Commercial Umbrella Insurance
While a Commercial General Liability policy provides you with asset-protection in the event of a loss, it is only designed to provide limits up to a certain amount. If a catastrophic liability loss occurs on your premises to a third party and you are found responsible the financial consequences could be devastating. Multi-million-dollar verdicts are commonplace today due to anti-corporate sentiment, aggressive advertising by the plaintiff’s bar, and litigation funding by private equity firms. Businesses today can’t afford to go without the extra liability limits that Commercial Umbrella insurance offers.
Protection Against Catastrophic Losses Under The Umbrella
A Commercial Umbrella policy is designed to pick up once your primary policy limits are exhausted in the event of a covered loss. Limits are typically available in million-dollar increments.
For example, let’s say you have a Commercial General Liability policy with limits of $2 million. A customer trips and falls at your premises and is seriously injured requiring surgery and ongoing medical treatment and is unable to work. The jury finds your business negligent and responsible for the injury and awards the injured customer $5 million. Without an Umbrella policy, you would be responsible for the difference between your $2 million General Liability policy and the verdict and/or settlement. An Umbrella policy with $5 million limits, in this case, would cover the remaining $3 million.
The amount of Umbrella insurance you need depends on your operations and exposures. Baldon Group will review your business to determine how much coverage you should carry for peace of mind and to protect what you’ve worked so hard to built.
