A Commercial Umbrella policy is designed to supplement existing insurance policies. This means Commercial Umbrella Insurance kicks in when the cost of a lawsuit exceeds the limits of certain liability insurance policies you already have. To best benefit from having Commercial Umbrella Insurance, it’s good to know when it does and doesn’t help. As a rule, Commercial Umbrella Insurance can only supplement coverage for these policies:
- General Liability Insurance.
- Hired and Non-Owned Auto Liability Insurance.
- Employer’s Liability Insurance (typically included in Workers’ Compensation policies).
If you reach a limit on any or all of these policies, your Commercial Umbrella Insurance may provide additional funds for a covered claim. So if you’ve reached your General Liability Insurance limit but have another claim, Commercial Umbrella Insurance may be able to help. If an employee injury lawsuit is costing your business way more than the standard Workers’ Comp policy can account for, again, Commercial Umbrella Insurance can help.