Given the growing number of lawsuits and higher award judgements, businesses should consider adding an extra layer of protection by securing a commercial umbrella policy. This type of coverage kicks in where standard business insurance leaves off by increasing liability protection against catastrophic loss.
Umbrella insurance serves two common purposes. First, it expands the limits of coverage on your existing general liability or commercial auto policies. And second, it broadens the coverage for things your underlying policies might not cover. Legal fees, medical expenses and damage expenses could easily exceed your standard liability protection, and without an umbrella policy, a business owner may have to pay out of pocket to cover these.
Despite what its name suggests, these are some common exclusions that umbrella policies do not cover:
- Liquor liability
- Workers compensation, employers liability and employment-related practices
- Aircraft and watercraft, or racing activities
- Recall of products, work or impaired property
- Electronic data
By considering the financial and operational details of your business, any prior losses and your existing general liability and commercial auto coverage, First Baldwin Insurance can help you determine how much additional protection you need through an umbrella policy.