Business Umbrella/Excess Liability

Umbrella Liability Insurance

When your small business exceeds the limits on its underlying insurance policy you are in need of umbrella liability insurance. Some customers might also know this type of insurance as excess liability or commercial umbrella insurance. Most businesses hold several different policies such as general liability, employer’s liability or hired and non-owned auto liability. An umbrella liability policy performs just like it sounds; it acts like an umbrella to cover those policies already in existence, which gives you an added layer of insurance protection. For example, if your general liability policy offers coverage to $1 million in claims, but you have a claim that is settled for $1.5 million, the umbrella liability policy would cover you by giving coverage to the overage that you owe.

As you can see, umbrella liability insurance policies protect your business. With your umbrella insurance you will be able to obtain higher policy limits on your other business insurance policies- all at affordable rates.

Umbrella liability policies also protect you financially. One positive aspect is that the umbrella policies will cover most other insurance policies, although there are policies such as errors and omissions and professional liabilities that an umbrella liability policy will not cover.