What to Know About Commercial Umbrella Insurance

Posted By: Team Moody,

Although we all hope not to be involved in a catastrophic liability claim, in today’s litigious environment more and more lawsuits are being brought against both large and small businesses. Commercial Umbrella is a type of liability policy, applying over and above the coverage afforded by your primary general liability policy. Speak to a worldwide insurance agent to learn more about the coverage that you need, and read on to see how this could benefit your business.

How Umbrella Liability Works 

An insurance umbrella affords valuable protection against large lawsuits that could devastate your firm. Every day we hear about large settlements being awarded. Whether a lawsuit is legitimate or frivolous, you must still defend yourself against the allegations. Should a devastating loss occur, an Umbrella Liability policy could make the difference between keeping your business open or having to close.

Umbrella policies cover a judgment against your business that exceeds underlying Liability insurance limits. It also covers the business’s assets and protects your ability to remain profitable in the future.

How Much Coverage is Needed? 

What to consider when determining how much coverage you need:

  • What are your current profits, and how much do you expect your profits to rise?
  • What is the value of your current assets?
  • What will the value of your future assets be?
  • Do your business operations involve products or services that put you at greater risk?

A worldwide insurance agent can help you determine the coverage amount that works best for your business.

Your Coverage Needs and Business Type

What kind of business do you have? The coverages your company requires depends on the type of business you operate. For example, if you operate a brewery, you might choose an umbrella that includes liquor liability coverage. Likewise, if your firm owns a boat for entertaining clients, you might opt for an umbrella that includes watercraft liability coverage.

Also, the limits your firm needs largely depend on the nature of your business. For instance, hotels, crane operators, and pharmaceutical manufacturers are subject to catastrophic losses. They need higher umbrella limits than say, a retail store. 

Umbrella premiums vary depending on the limits and coverages you purchase. Ask your worldwide insurance agent for an estimate of how much an umbrella policy is likely to cost. Nonetheless, hopefully, your business is one that is proactive in its preparation to combat its unique risks. 

About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.