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What is Business Umbrella Insurance Used For and How Can it Protect Your Company?

Given the unpredictable fiscal and environmental conditions businesses face today, having the right insurance coverage is essential. Business umbrella insurance provides increased financial protection from unexpected risks and allows you to expand your coverage limits beyond those offered by traditional business policies. 


With so much at stake, a little extra protection can go a long way. Let’s take a dive into umbrella insurance and what it covers.


What is Business Umbrella Insurance?

Business umbrella insurance is a supplemental liability insurance policy that provides additional coverage beyond the limits of your primary policies, such as general liability or professional liability insurance. It protects against major claims by providing an extra layer of protection for any losses that exceed the coverage limit of your existing policies. 


When Do You Need Umbrella Insurance?

Because umbrella insurance can supplement your coverage by providing extra liability protection, it can be a valuable asset in any business. Should you still owe damages, business umbrella can provide additional funds to make up the difference and supplement your coverage provided by:

  • Employer liability insurance (often included in workers’ compensation)
  • General liability insurance
  • Commercial auto insurance

Umbrella insurance can boost coverage for any (or all) of these policies. This coverage can also be extended to any property owned by the business, regardless of whether it is located on or offsite. Businesses that need to buy umbrella insurance coverage include:

  • Businesses that have insurance but need to close the gap on requirements above $2 million.
  • Businesses with significant liabilities, such as those involved in construction or professional services.
  • Businesses with a large workforce

What Does Business Umbrella Insurance Cover?

Specifically, business umbrella insurance can provide additional coverage for any of the following:


Slip-and-fall Injuries

If a customer or client who visits your business slips and falls, you may be held liable. Umbrella insurance will provide additional coverage over and above what your general liability policy covers to help pay for medical bills and other damages.


Third-party Property Damage

If an accident occurs on your premises and any third-party properties are damaged, umbrella insurance can cover the cost of repairs or replacements.


Car Accident Liability

If someone driving for your company is involved in an auto accident, this additional insurance can help cover legal costs associated with the event as well as damages arising from it.


Employee Injury Lawsuits

Should employees file suit against you for workplace injuries, this insurance can provide additional coverage over and above that offered by workers’ compensation insurance.


What are the Different Options Available?

Business umbrella insurance policies vary by carrier and can be tailored to meet the specific needs of your business. These policies are usually available in packages that range from $1 million to $10 million in coverage. 


As with any insurance policy, umbrella insurance has several different coverage limits, deductibles, and exclusions. It is important to carefully review any policy you are considering before making a purchase.


Save Money and Get Protected with Bethany Insurance

When it comes to business insurance, it pays to be prepared with the right level of protection for your business. Bethany Insurance can help you determine the best coverage option for your specific needs and find the most competitive rates in the industry. 


Get in touch with us today to learn more about how we can protect your business from unexpected losses.