A commercial umbrella insurance policy is designed to cover the additional liability and coverage limits of primary policies. The additional policy covers extra expenses of legal expense, medical payments, and damage costs. This policy applies to policies like:
1.General liability insurance
2.Commercial auto insurance
3.Employers’ liability insurance.
It seems similar to excess liability insurance, but it’s not. Excess liability insurance increases the underlying limits of a plan without additional broad coverage whereas commercial umbrella insurance has broader coverages that protects company from liability claims. The liabilities include, but are not limited to:
1.Libels and slanders
2.Legal defense cost
3.Reputational damage
4.Auto accidents
5.Product liability
6.Customer bodily injury or property damages.
Some exclusions of this policy are:
1.Commercial property insurance
2.Errors and omission insurance
3.Lawsuits related to employee discrimination
4.Punitive damages
5.Claims already covered by primary policies
Various factors affect the cost of commercial umbrella insurance like:
1.Size of the company
2.The number of employees
3.The industry of your business
4.Claims history
5.Insurance carrier you choose
To learn more about Commercial Umbrella Insurance, follow this link: quotezebra.com/commercial-umbrella-insurance/