Umbrella Insurance provides increased policy limits, above the primary liability limits in the case of large claims.

Umbrella Commercial Insurance

A Commercial Umbrella Insurance policy adds an additional layer of protection to help safeguard your business.

The coverage provided by your Commercial General Liability, Commercial Automobile Liability or Commercial Employers’ Liability policies should protect you in most situations. However, adding a Commercial Umbrella policy provides an additional layer of protection. 

This additional layer of protection to help safeguard your assets should your business become faced with the catastrophic impact of a large claim or lawsuit.

What happens if your business is sued and the judgment amount exceeds the liability limits of your primary insurance policy, or you have multiple claims and the limits are exhausted? Not having adequate coverage for lawsuits can leave your business exposed. Umbrella insurance can help address these risks.

Top questions on Umbrella Coverage

Your umbrella insurance can come into play if you are found liable and need to pay damages, or if you are sued and need to pay for your legal defense – even if the result is that you are not found to be responsible. An umbrella policy only pays once your basic liability limits have been exhausted or the claim is excluded from the basic liability coverage. 

If you have a personal umbrella policy, your premiums are not typically tax deductible. If you own a business and have an umbrella policy that supplements your other business liability policies, your premiums may be tax deductible.

One particular gray area exists with owners of rental properties. If you own homes and rent them out, you are conducting a business transaction, but you can also include your rental properties under a personal umbrella policy. In this case, you may be able to deduct a portion of your premiums on your taxes. Ask your tax professional.

Umbrella insurance can most certainly cover professional liability and it’s fast becoming one of the most popular forms of insurance with professionals. Psychologists, financial planners, and investors are just some occupations that take advantage of this type of policy. 

A professional liability or business umbrella policy only provides liability supplements to existing business liability policies. A business umbrella policy differs from a personal umbrella policy because it focuses on specific liabilities businesses face, such as “errors and omissions,” meaning advice or consultation that results in a loss for the client.

Umbrella insurance can cover lawsuits and liability claims that do not result in legal action. Protecting assets against potential lawsuits is the main motivator for many people to purchase umbrella insurance. 

The main purpose of liability insurance is to protect you if you’re found liable for causing property damage or bodily injuries, and for your legal defense even if you are not found liable. When someone sues you, they are seeking reparations for damages you are perceived to have caused. 

Your primary liability insurance will pay the costs associated with the claim after your deductible has been met, and up to the limits of the liability policy. If the wronged party is awarded more than your standard liability coverage, the umbrella insurance begins to pay out.

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