What is a Commercial Umbrella and Do You Need One?

If you own a business, you may have heard the term ‘commercial umbrella‘ tossed around. But what exactly is it and do you need one?

In short, a commercial umbrella is an extra insurance policy that covers beyond the limits of your primary liability insurance. Think of it as an added layer of protection against unforeseen events.

Let’s say you own a retail store and someone slips and falls on a wet floor. The injured party sues for medical bills, lost wages, and pain and suffering. If your primary insurance coverage is $1 million but the damages exceed that amount, a commercial umbrella policy could kick in to cover the remaining costs.

But do you need one? That depends on your business and industry. If you have high-risk operations or deal with large volumes of customers, a commercial umbrella policy may be worth considering to protect your assets.

It’s also important to note that commercial umbrella policies can cover a range of liability types, such as bodily injury, property damage, and even libel and slander. It’s a good idea to work with an insurance professional to understand your unique risks and coverage needs.

In short, a commercial umbrella may not be the right choice for every business, but it can provide added peace of mind and protection for those who need it.