When a claim becomes more expensive than expected, an umbrella or excess policy from InSource can save the day.
When you exhaust all your liability insurance limits, you’re not entirely out of options. Umbrella and excess insurance policies from InSource give an extra layer of protection when you need it most.
When you purchased liability insurance with multi-million-dollar limits, you never imagined you would need all that coverage. But one claim has pushed you over the edge, and now you’re responsible for paying what your policy won’t—unless you have commercial umbrella insurance.
Umbrella insurance picks up where your primary insurance stops to increase your overall coverage limits, so you won’t have to dip into your company’s savings to pay settlement costs, lawyer fees, or medical bills. The best part is: Commercial umbrella insurance can sit over several policies at once, including commercial auto, hired and non-owned auto, employers’ liability, and commercial general liability insurance, to give you additional coverage across the board.
Whether you want an umbrella policy because a contract requires it or you’re looking for a cheaper way to increase limits on several policies, InSource can help. Our team can assess your risks, determine the limits you need, and select an umbrella policy that closes the gaps in your current coverage.
You may have heard that commercial umbrella and excess liability insurance both give you additional liability coverage, but these policies work differently. Before you request a quote or buy a policy, it’s crucial to understand the key differences and decide which option is better for you.
Commercial umbrella insurance policies are best known for adding coverage to other liability policies, but that’s not all they do. Umbrella policies can also “drop down” and act like your primary policies during claims that aren’t covered otherwise. For example, your business liability policy may exclude a particular claim event covered under your umbrella policy, so your umbrella policy would kick in to cover costs immediately.
Like umbrella policies, excess liability coverage combines with other liability policies to provide additional limits. However, excess insurance typically contains the same coverage and exclusions as your primary policies, and it won’t drop down during uncovered claims. Additionally, excess policies only sit over one type of liability policy, such as professional liability, instead of giving extra coverage across the board.
You don’t have to adjust every liability policy and pay each carrier separately to get better protection. You can satisfy your contracts and reduce risk across the board with one convenient policy from InSource.
Buying a commercial umbrella insurance policy is a quick and easy way to increase your limits, but you may not need one to protect your liability risks. Many small businesses’ current insurance coverage is sufficient without an umbrella or excess policy.
It’s important to keep in mind that umbrella insurance doesn’t add coverage to your commercial property insurance. If your most significant business risk is property loss, and you currently have enough business liability insurance to cover other risks, you most likely don’t need umbrella coverage.
An umbrella or excess policy might be the right choice for your business if you meet the following criteria:
- You can envision a liability claim surpassing your policy limits: If you can imagine a scenario in which a client lawsuit, car accident, or customer injury becomes more expensive than your policy limits, you probably need additional coverage.
- Your property is open to the public: Customers could suffer injuries on your premises and sue. If you have heavy foot traffic on your premises, you need more liability protection than an office that’s closed to the public.
- Your employees work on other people’s property: Going to your customers’ property is just as risky as inviting them to yours. Customers can sue if employees damage their property while working, increasing your liability risks.
- Your employees frequently use vehicles for work tasks: If your employees cause a car accident while working, your business can be held liable for vehicle repairs, replacements, and medical expenses. Multi-car accidents can easily surpass the seven-figure mark, so you should consider extra coverage if your employees regularly drive during the work day.
- Your employees perform dangerous tasks: Workers in the construction and oil and gas industries are more likely to suffer injuries. They can sue your business if they believe those injuries resulted from negligence. Commercial umbrella insurance can cover excess costs if a lawsuit surpasses your employer’s liability limits.
If you’re unsure whether increasing your limits individually or purchasing commercial umbrella insurance makes more sense for your business, InSource can help. We gather umbrella and excess quotes from reputable insurance companies and calculate the cost of changing your current policies to determine which option is most affordable.
Are you concerned that your current policy limits won’t cut it during a serious claim? Purchase an umbrella or excess insurance policy before it’s too late. For as low as a few hundred dollars a year, you get a critical safety net that can keep your business afloat when the unexpected occurs.
At InSource, our top priority isn’t just finding the cheapest insurance policies for your business. As a risk management agency, we strive to cover your risks and reduce them. We can assess the biggest hazards threatening your business, implement safety training and other risk mitigation practices, and identify the best policies to keep you covered without stretching your budget.
Get in touch today if you want to learn more about commercial umbrella insurance, excess insurance policies, or our full suite of insurance products for businesses.
Protect your business with the right insurance through InSource Insurance Group.