Commercial Umbrella Liability

On Point.

Commercial “Umbrella” Liability coverage extends the limits and coverage of your Commercial General Liability (CGL) insurance capacity. It acts like a shield moving to fill gaps that might exist in your individual policies.

Businesses of all scales and sizes face different exposures day by day. While a standard CGL policy offers coverage for common losses and covers a range of exposures, when the extraordinary happens, your coverage may not handle the payout required in an insurance settlement. Leaving your business holding the bag for the rest of the bill.

A Commercial Umbrella insurance policy covers gaps left behind by a CGL policy. It can extend limits, and offer coverage not available in a standard policy.

Commercial Umbrella Liability coverage covers many of the same claims CGL coverage would but can extend the typical coverage you carry against the following claims:

Attorney fees from a lengthy settlement.

Product Liability from a reaction to your products.

Bodily Injury from an accident at your place of business.

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Which business are you?

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How are Commercial Umbrella Insurance cost determined?

Commercial Umbrella insurance costs vary immensely as it depends on the liability limits the business needs to cover their exposures. A $1 million Umbrella Liability policy may cost your business as little as a few hundred dollars per year. However, Commercial Umbrella insurance requires a CGL or General Liability policy – which may be the most expensive of your policies.

If cost is a concern of yours, you can get in touch with an Excalibur Insurance broker for ways to save. Raising your deductible, reviewing your coverage, and asking about discounts are all ways you can reduce costs without slashing any critical coverage. A commercial expert from Excalibur may be able to offer you more suggestions based on your business’s specific circumstances.

Can you give me a few examples of ‘coverage’ in action?

1

Your delivery van skids into the front of a neighbor’s shop on ice. The damage is extensive resulting in lost income, trauma and an unexpectedly closed workspace for your neighbor’s business. The coverage on your fleet insurance isn’t enough to cover loss of income and repairs to the business so your Umbrella policy steps in to top up the settlement.

2

Your employee is involved in an accident while driving to meet a client. An improperly insured driver hits them on route, a lengthy legal battle ensues. When the dust finally settles the legal bills are larger than your liability coverage, the Umbrella policy will help ensure your business doesn’t fold paying legal bills.

3

You run a bread company. Rodent hair is found in your product by a customer and a legal process ensues over your clean work practices. In the end you aren’t at fault but the damage to your reputation and your legal bills have piled up. Your umbrella policy is there to help manage the damage your CGL didn’t cover.

Frequently Asked Commercial Umbrella Coverage Questions

No two businesses are the same, and as such their coverage needs can vary. These frequently asked questions might help you understand more about Commercial Umbrella Insurance

Excalibur Insurance can help you secure a Commercial Umbrella solution to best meet your needs. Schedule a consultation with us today.

What are the benefits of a Commercial Umbrella insurance policy?
Your standard CGL policy can be depleted due to claims during your policy term, or; your business may be exposed to liability exposures that can exceed your existing coverage limits. Commercial Umbrella insurance expands your CGL limits and offers additional coverage. This coverage sits on top of your CGL insurance. It gives you extra peace of mind knowing that your business can continue to operate even after a significant liability event.

Commercial Umbrella insurance offers additional limits which benefit businesses that could face liability events that exceed ordinary coverage limits. Some Commercial Umbrella insurance policies may even provide worldwide coverage, whereas CGL policies could be limited to only Canada and the United States. Commercial Umbrella insurance should be considered if:
- Your business has multiple companies and properties
- Your business travels worldwide or ships products worldwide
- Your business has purchased only the minimum limits for liability insurance
- Your business does exchanges in the United States
What Does Commercial Umbrella Insurance Cover?
Commercial Umbrella insurance covers almost anything your CGL policy would cover, such as attorney fees, damages, and medical expenses – although with limits that extend above those included in the basic policy. While your CGL policy may offer $1 million in coverage, your Commercial Umbrella insurance policy could cover the remaining $500,000 – depending on whatever your policy limits are. Take, for example, an instance where your business is found liable for bodily injury at your place of business, and you are in the hole for $1.5 million.

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What if my business needs additional types of insurance?

Besides Commercial Umbrella, there are several different commercial insurance options you may choose from that are more specific to your business’s particular needs. Those include:

Liquor liability insurance protects your business from injury claims if it supplies, manufacturers, or distributes alcohol.
D&O liability insurance covers your company board’s officers and directors from legal fees and settlement costs.
Errors and omissions, or professional liability insurance, covers professional businesses that offer services or advice from malpractice claims and defense costs.
Cyber Insurance to protect your business from online or other digital attacks

Speak to your Excalibur Insurance agent about developing the best coverage package for your unique business needs.