A Commercial Umbrella Policy is quite simply an extra layer of coverage over top of your other Commercial Policies. Having this type of policy is a great way to provide higher limits of coverage with a single policy.

Some items to consider when purchasing a Commercial Umbrella Policy

Commercial Umbrella Policy Provides Broad Coverage

Some Umbrella policies will provide “Worldwide” coverage even if the underlining policy does not. For example, if your business requires travel outside of the United States the Umbrella policy could extend coverage even if your General Liability, or Workers Compensation Policy will not.

Know the Difference Between “Excess Liability” & “Umbrella Liability”

You need to understand that these policies are extremely different. Excess Liability is an extra layer of Liability coverage, but only to specific underlining coverage. For instance, you may have an Excess Liability policy over your General Liability policy, but nothing over your Workers Compensation, and Business Auto Policy. Excess policies can have other limitations as well. An Umbrella policy is much better as it will provide the extra layer of Liability coverage to all your underlining policies. The point here is to just be aware of the differences.

Common Questions About Commercial Umbrella Policies

This policy is important because you can obtain much higher limits than what your Commercial Liability, Business Auto, or Workers Compensation policies can provide. Typically Umbrella policies start with a $1,000,000 limit but you can go much higher. Determining a coverage limit will be based on the size of your business. Most small business owners have a $1,000,000 to $5,000,000 Commercial Umbrella Policy. Furthermore, you may also be required by a client to have a Commercial Umbrella Policy.