What is Commercial Umbrella Insurance?
Commercial Umbrella Insurance enhances the level of liability coverage over and above the amount of coverage provided by a basic commercial automobile or commercial liability policy. In the event that these limits are exhausted by a liability claim settlement, a Commercial Umbrella policy extends the liability protection further. Coverage levels can be purchased in million dollar increments.
What does Commercial Umbrella Insurance cover?
Florida Commercial Umbrella Insurance provides enhanced levels of liability protection for businesses in the event of a liability claim. In a situation where the settlement or associated legal fees extend beyond the coverage limit of the underlying commercial insurance policies, the Commercial Umbrella policy will provide additional coverage up to a predefined limit.
What are additional coverage options?
There are several coverage enhancements that generally add only a small amount to the total policy premium. Some of the more popular add-ons include:
- Defense Outside the Limit – provides for defense costs outside of limits. This endorsement retains the full limit to pay for actual claim settlement costs
- Self-Insured Retention (SIR) – mandates that the insured first pay a pre-determined amount as a pre-condition in order to access the Commercial Umbrella Insurance policy benefit.
Who should purchase Commercial Umbrella Insurance?
Florida Commercial Umbrella Insurance, is not mandatory, but it provides very significant protection to most businesses. As we all know, the rate of liability lawsuits and the associated legal fees continues to escalate, and often the basic liability coverage provided on standard commercial insurance policies is becoming increasingly inadequate. The protection provided by the Commercial Umbrella insurance policy is more important than ever.
What discounts are available for Commercial Umbrella Insurance?
There are a number of discounts that are typically available for Personal Umbrella Insurance. Some of these discounts are:
- Claim Free – If your company has avoided liability claims in the last 5 years, you may be eligible for this discount
- Safe Driver – If you and the drivers in your business have clean driving records, you may be eligible for this discount.
- Multi Policy – Bundling the Commercial Umbrella Insurance with your underlying commercial insurance policies will typically result in a discounted premium.