What Is Covered Under Commercial Umbrella Policies? 

Understanding how to insure your business against unexpected risks is essential, especially in dynamic business environments. At AAAADVANTAGE INSURANCE LLC, we know that standard liability policies may not always be enough to cover your company from large or unforeseen claims. That’s where commercial umbrella insurance comes in. It offers an extra layer of liability coverage when your primary coverage limits are reached.

What Does Commercial Umbrella Insurance Cover?

Commercial umbrella insurance is designed to offer excess liability coverage beyond the limits of your existing business liability policies, such as general liability, commercial auto and employer’s liability insurance. Here’s how it works.

• If a claim exceeds the limits of your underlying policy, your umbrella policy can help cover the remaining costs, up to its own limit.
• In some cases, umbrella insurance may cover certain claims that your primary policies do not, depending on the policy terms.

Common Scenarios Covered

Our team often recommends commercial umbrella insurance to business owners who want coverage against high-cost claims. Typical scenarios where this coverage may apply include:

• Major lawsuits. If your business faces a lawsuit for libel and the settlement exceeds your general liability limits, umbrella insurance can help cover the difference.
• Auto accidents. If an employee causes a serious accident while driving a company vehicle and the damages surpass your commercial auto policy, umbrella coverage can step in.
• Third-party injuries. If someone is injured on your premises and medical or legal costs exceed your liability coverage, umbrella insurance can help cover your assets.

Who Needs Commercial Umbrella Insurance?

Businesses of all sizes can benefit from this added coverage, but it’s especially valuable for those with higher risk exposures, such as companies with frequent customer interactions, multiple locations or commercial vehicles. No matter where you operate, having excess liability coverage can be a smart move for long-term security.

How We Help

At AAAADVANTAGE INSURANCE LLC, we work closely with business owners to assess their unique financial risks and recommend the right level of umbrella coverage.

Contact our team today to discuss your options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.