Get Great Coverage in Minutes
All it takes is a few clicks.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance gives you extra coverage to help pay for costs that exceed certain liability policy limits. Without this type of commercial insurance coverage, you’d have to pay out of pocket for liability claims that cost more than your coverage limits. This can include:- Legal costs
- Medical bills
- Damage to other people’s property
- Judgments and settlements
To get added protection, get a commercial umbrella insurance quote today.
How Does Commercial Umbrella Insurance Work?
A commercial umbrella policy extends the limits of some of your primary liability insurance policies, such as general liability insurance and commercial auto insurance.Our commercial umbrella insurance is flexible. It can extend the liability coverage of policies you may have with other insurance companies. So, if you have a general liability insurance policy from another insurer, we can help extend that policy.
Let’s say one of your employees gets into a car accident while making a delivery to a customer. The property damage and bodily injury costs exceed your business’ commercial auto liability limits. If you don’t have a commercial umbrella policy, you’d have to pay the amount that exceeds your policy limit, putting your business at financial risk. That’s why it’s important to have umbrella coverage.
What Does a Commercial Umbrella Policy Cover?
A commercial umbrella policy can help cover claims of:
- Bodily injury, whether it’s an injured customer or employee
- Property damage your business causes to someone else’s belongings
Be aware that commercial umbrella insurance provides additional coverage on top of your general liability policy. So, if you don’t have general liability insurance, you won’t be able to get commercial umbrella insurance.
Commercial Umbrella Limits
Insurance companies write umbrella policies with aggregate limits. These limits can range from $1 million to $15 million. This means your insurance company will only cover claims up to that amount.
What Is Not Covered By Commercial Umbrella Insurance?
Commercial umbrella insurance doesn’t cover every kind of claim. It also doesn’t extend the limits of certain types of policies, like commercial property insurance.
Let's say a fire significantly damages your business’ equipment. The cost to replace and repair your property exceeds your commercial property coverage limits. You’d have to cover the difference out of pocket because commercial umbrella insurance doesn’t cover business property claims.
Who Should Purchase Commercial Umbrella Insurance?
Typically, the more your business interacts with clients and customers in person, the higher your liability risk. Your risks can be even greater if your employees use heavy machinery or dangerous equipment.If you think the cost of a claim could exceed your liability limits, buying commercial umbrella insurance is a good idea. This coverage can help if your business:
- Frequently interacts with customers
- Works on someone else’s property
- Allows the public to visit during open hours
Who Should Purchase Commercial Umbrella Insurance?
If people can visit your business, it increases the risk of bodily injury. For example, wholesalers often work with machinery to restock shelves during business hours. Using this type of equipment around customers poses a bodily injury risk. If someone got hurt, you can face costly medical expenses and lawsuits that can exceed your GLI limits.
Working offsite can also increase your business’ liability risk. For instance, if your employees are working at a client’s house, there’s a higher risk of property damage. They can accidentally:
- Put holes in the walls
- Break windows
- Damage cars
How Much Does Commercial Umbrella Insurance Cost?
Your commercial umbrella insurance cost can depend on your:
- Amount of underlying coverage
- Type of business
- Business’ size
Some industries face more risks than others, which can increase insurance costs. For example, a construction business’ umbrella coverage can cost more than a retail business.
How to Get a Commercial Umbrella Quote
We make it quick and easy to get a commercial umbrella quote online. Be sure you have a copy of your current general liability or commercial auto insurance policies. You’ll need to know how much coverage you have for each policy when you’re getting a quote.
We’ve helped over 1 million small business owners with their business insurance needs, and we’re here to do the same for you. Get a quote today and learn how we can help protect your business.
Other Business Coverages
The Hartford offers insurance coverages for companies large and small.