Commercial umbrella insurance is often called umbrella liability insurance. Its primary purpose is to give your business added protection from potentially ruinous lawsuits and accidents. It serves as a backstop to other policies, including General Liability, filling in when other coverages have reached their limits.
These are some of the most compelling reasons for having a commercial umbrella insurance policy:
- Provides increased financial protection from unexpected risks
- Generally enables you to expand your coverage limits on several policies through one umbrella policy
Commercial umbrella insurance often pays for legal costs associated with a lawsuit – and frequently serves as a safety net when other liability policy limits have been exhausted in satisfying judgments and settlements.
Commercial umbrella insurance can be used to supplement your coverage under:
- Commercial Auto insurance
- General Liability insurance
Because other underlying policy limits are used first, commercial umbrella coverage is generally cheaper than traditional first-dollar liability insurance.