What’s the Difference Between Commercial Umbrella and General Liability Insurance?

When the costs of a single incident exceed what a standard policy can cover, the gap may fall directly on the business. Understanding how general liability and commercial umbrella insurance work, and how they work together, is important for any business owner.

What Is General Liability Coverage?

General liability insurance can cover third-party claims of bodily injury, property damage and personal injury caused by your operations, products or employees. This can step in to help cover legal defense costs, settlements, and medical expenses related to those types of incidents. Many businesses may carry this as a foundational coverage.

What Does Commercial Umbrella Insurance Do?

Commercial umbrella insurance can extend the limits of your underlying policies. When a claim exhausts the limits on your general liability, commercial auto, employers liability, or other liability coverage, your umbrella policy can step in to handle the remaining costs.

How Can These Policies Work Together?

General liability and commercial umbrella insurance can complement each other. The former can serve as your first layer for covered claims, while the latter can cover the remaining costs once your primary policies have been exhausted.

Businesses that can benefit from carrying both policies include:

• Contractors and tradespeople who work on client property
• Businesses with significant foot traffic or public exposure
• Companies that sign contracts requiring higher liability limits
• Businesses that rely on a fleet of vehicles for their operations

Finding the Right Fit for Your Business

Contact AAAADVANTAGE INSURANCE LLC to talk through your options and find a policy combination that fits how your business operates. We work with businesses across Tamarac, FL and are here to help you build a coverage strategy that makes sense for your needs and goals.

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.