Commercial Insurance policies are a bit like umbrellas — you carry them in case you need protection. Carrying the comparison further, Umbrella Insurance policies can be likened to golf umbrellas. They provide much broader coverage, above and beyond the standard limits, when your other policies are not up to the task. If you want to keep your business safe and thriving, you will need both types of insurance.
Wherever your company is located in New Jersey, contacting Blue Lion Insurance Advisors, LLC at (732) 649-1600 or online is the best way to explore your options. Because we are not affiliated with any particular insurance company, we can focus on finding the Umbrella Insurance policy best-suited to meet the needs of your business, regardless of which provider offers it.
While typically Umbrella Insurance is included as part of your General Liability or Commercial Auto Insurance, you may also purchase a “stand-alone” umbrella policy characterized by having its own terms, conditions, limitations, and exclusions. Commercial Umbrella Insurance can be purchased in million dollar increments up to approximately 5 million dollars.
The reasons to carry Commercial Umbrella Insurance are compelling and include protecting you from:
- Personal injury lawsuits arising from premises liability (e.g. customer slip and falls), auto accidents, or product defects can often result in enormous settlements. Since these awards may reach millions of dollars for the plaintiff’s loss of income and ongoing medical and nursing care, they can easily exhaust the amount of coverage in your General Liability Insurance policy.
- Wrongful death claims from the family of deceased accident victims may win damages for final medical care, loss of future income, and loss of emotional support and companionship, exhausting your General Liability coverage.
- Your clients who, especially if you are a tech company, will typically require you to have Umbrella Insurance.
- Business bankruptcy if your company has to pay damages well above the amounts it is covered for by other policies
- Umbrella Insurance policies are generally quite cost-effective. A few hundred dollars annually may buy you a million dollars worth of extra coverage over and above your existing policies. If you have to tap your Umbrella Insurance policy, the purchase will have been invaluable.
- False arrest, libel, slander, invasion of privacy, and liability coverage on rental units you own.
- High legal fees and court costs that go beyond the scope of your other insurance policies.
- Auto accident injury claims that occur in hired, as well as company-owned, cars.
- Personal Bankruptcy since without Commercial Umbrella Insurance, once your other insurance coverage is exhausted, your personal assets may be seized to satisfy a judgment.
- Is there anything Umbrella Insurance does not cover?
No insurance policy is perfect, though many are exactly what you need in a crisis. It is important to be aware that Umbrella Insurance does not provide extra coverage for professional liability insurance (errors and omissions or E&O insurance). It also does not cover business losses, damage to personal belongings, intentional criminal acts, written or oral contracts, or transmitting a communicable disease.
How Commercial Umbrella Insurance Works?
When you are faced with a claim that exceeds the limits of your current policy, Umbrella Insurance provides the extra coverage you need to protect your business and assets from financial risk. It’s worth noting, however, that Umbrella Insurance only works if:
- You already have a matching underlying liability policy (e.g. General Liability or Business Auto) in place.
- The limits of your existing policy have been reached.
The Takeaway
Commercial Umbrella Insurance helps to cover costs that run especially high in cases of:
- Personal injury
- Product liability
- Premises liability
- Damage of customer or client property
- Libel, slander, and copyright infringement
- Attorneys’ fees and court costs
Wise business owners throughout New Jersey turn to Blue Lion Insurance Advisors, LLC for the Umbrella Insurance that will make their companies’ insurance policies Blue Lion Strong™.
Contact Our Experienced Umbrella Insurance Experts Today
If you have further questions about Umbrella Insurance or any other type of insurance for your business, please contact us for efficient, friendly service. At Blue Lion Insurance Advisors, we meet our goals by successfully meeting yours.