Commercial Umbrella Insurance Humble, TX
A commercial umbrella insurance policy can help shield you from the many unforeseen occurrences that might happen in today’s business world.
Read on to learn all you need to know about umbrella insurance, from what it is to how it can minimize your company’s vulnerabilities.
What Is Commercial Umbrella Insurance?
A commercial umbrella policy picks up where your general liability, employer’s liability, and commercial auto insurance policies leave off. It gives you the additional coverage you need to cater to the costs that exceed your current liability limits.
Without a business umbrella insurance policy, you might have to pay out of pocket to clear liability claims whose expenses exceed your coverage limits.
These can include anything from legal costs and medical bills to covering the damage that other people’s properties experience.
How It Works
Imagine one of your employees has a car accident while delivering a product to a client or damages someone’s property. If the bodily injury and property damage costs are less than your commercial auto liability limit, there will be no problem.
However, if these costs exceed the policy’s limits, you will have to clear the amount that exceeds the limit yourself. Doing so can easily place your business at financial risk, depending on how extensive the damages are.
The good news is that having a commercial umbrella insurance policy helps you avoid this, allowing you to extend your primary liability insurance coverage limits. In addition, most umbrella insurance policies are flexible. Many even allow you to extend the liability coverage of policies you have with another insurance company.
Remember that your umbrella insurance picks up where other policies leave off, meaning it will not kick in until you exceed the limits of your other policies.
Commercial Insurance Coverages to Consider
Umbrella insurance can boost liability coverage on multiple types of policies, protecting you from the most expensive lawsuits. Here are some of the critical commercial insurance coverages you should consider getting.
Auto Accidents
Adding a commercial umbrella policy to your commercial auto or hired and non-owned auto insurance policy can help you cover additional costs if someone sues your business for the damages your company vehicle causes.
Besides covering your company’s legal defense costs, the policy could also cover the damages you pay to other drivers in the form of a court-ordered judgment or settlement.
Employee Injury
Another commercial insurance coverage to consider is employee injury. Including commercial umbrella insurance in your employer’s liability insurance policy can help you cover employee lawsuits that result from work injuries.
Third-Party Body Injury
The coverage can also extend your commercial general liability insurance policy limits, enabling you to clear the legal expenses you incur should someone injure themselves on your business’ property.
For instance, let’s say a customer trips on an uneven step and sustains severe injuries that force them to sue you to recoup their medical expenses. The umbrella insurance policy will cover additional costs if the damages exceed your business’ general liability limit.
Third-Party Property Damage
Umbrella insurance also covers third-party property damage, helping you pay for the legal bills related to the damage or destruction of third-party property.
What Umbrella Insurance Does Not Cover
Your business umbrella insurance policy will not cover:
- Damages that are within the underlying policy limits: The coverage only becomes active once the underlying policy exceeds its limits.
- Professional errors: The policy will not cover lawsuits resulting from professional errors. However, an excess liability insurance policy can boost the limits of your professional liability insurance.
- Business property damage: Umbrella insurance does not cover property insurance.
Do You Need Commercial Umbrella Insurance & Why?
While many once believed that umbrella insurance was only necessary for big businesses, more and more small businesses are investing in it today.
If you are uncertain about the merits of purchasing an umbrella insurance policy, consider asking yourself the following questions.
Do You Have a Lot of Contact with the Public?
Typically, the more in-person business you conduct with your customers and clients, the higher your liability risk is.
Is Your Work Hazardous?
Liability risks tend to increase if your employees use dangerous equipment or heavy machinery to perform hazardous work. Umbrella insurance can guard against employee claims, proving useful, especially in industries like construction.
Does Your Business Own Many Vehicles?
If your business has a fleet of vehicles, opting for coverage that protects you against the cumulative costs of vehicle accidents can help you avoid placing your company under financial strain.
The Benefits of Commercial Insurance
Additional Protection
A commercial umbrella policy’s most significant advantage is the additional protection it offers. This extra protection is especially essential if you run a small business or have a company with a lot of valuable assets.
Without it, you run the risk of potentially losing your business if you are unable to cover the damages of a lawsuit.
Broader Coverage
A general liability policy does not cover all situations, often excluding coverage for specific events. Fortunately, a commercial umbrella policy gives you access to broader coverage, shielding you and your business from unforeseen perils.
Low Cost
Umbrella insurance tends to be relatively inexpensive compared to the level of coverage it offers. Since it is secondary coverage and only takes effect after you surpass your underlying policy’s limit, purchasing this additional coverage is affordable.
Request a Quote on Commercial Umbrella Insurance Now
Depending on your company’s nature, you could be at risk from one of the growing number of unforeseen occurrences. Without sufficient coverage, you might have to pay out of pocket to cater for additional expenses and damages.
Are you interested in purchasing a commercial umbrella policy for your company? Reach out to Lee Insurance Agency. We have a trustworthy, knowledgeable staff committed to offering you maximum protection, tailoring our plans to your specific needs.
Contact Lee Insurance Agency today by calling (281) 812-8400 to speak to an insurance agent and request a quote on our Humble, TX, commercial umbrella insurance policies.
