Business Umbrella Insurance
What Is Umbrella Liability Insurance?
Even if you carry General Liability Insurance for your business (via a Business Owner’s Policy), you might face a settlement, or judgment in excess of your coverage limit. Without Business Umbrella Insurance (also sometimes called Umbrella Liability Insurance or Excess Liability Insurance), you would have to pay the uncovered expenses out-of-pocket.
How Does Business Umbrella Insurance Protect Your Business?
Umbrella Insurance is the most affordable way to obtain higher liability limits. For a single premium, umbrella liability or excess liability policies add another layer of protection to any of several other policies that you might hold, including general liability, employer’s liability, and hired and non-owned auto liability policies. Note though that a business umbrella policy cannot (for asset managers) extend coverage limits for any executive liability coverages, including Errors & Omissions, Directors & Officers, Employment Practices or Fiduciary Liability.
To illustrate how a business umbrella policy works in the event of a large claim, if you have $1 million in general liability coverage and a covered claim is settled for $2.5 million, your umbrella policy would pick up the additional $1,500,000.