Why Your Business Needs Commercial Umbrella Insurance

As a business owner in Minnesota, you understand the importance of protecting your assets and finances. However, even with the best planning and precautions, accidents can happen. Commercial umbrella insurance is designed to provide an additional layer of protection for your business beyond what your standard liability policies cover.

What is Commercial Umbrella Insurance?

Commercial umbrella insurance is a type of liability insurance that provides coverage above and beyond the limits of your primary liability policies, such as general liability, commercial auto liability, and employers’ liability. It is designed to protect your business from catastrophic losses that exceed the limits of your underlying policies.

How Commercial Umbrella Insurance Helps You

Legal Costs

If your business is sued for negligence, defamation, or other covered claims, the legal costs can quickly add up. Commercial umbrella insurance can help cover these expenses, including attorney fees, court costs, and settlements.

Medical Bills

If someone is injured on your business premises or as a result of your business operations, you could be held liable for their medical bills. Commercial umbrella insurance can help cover these costs, protecting your business from financial ruin.

Damage to Other People’s Property

If your business causes damage to someone else’s property, such as a customer’s car or a neighboring building, you could be held liable for the cost of repairs. Commercial umbrella insurance can help cover these expenses, ensuring that your business is protected.

Judgements and Settlements

If your business is found liable for damages in a lawsuit, you could be required to pay a large judgement or settlement. Commercial umbrella insurance can help cover these costs, protecting your business from having to pay out of pocket.

How Does Commercial Umbrella Insurance Work?

Commercial umbrella insurance kicks in when the limits of your underlying liability policies have been exhausted. For example, if your general liability policy has a limit of $1 million and you are sued for $2 million, your commercial umbrella insurance would cover the additional $1 million, up to the limits of the policy.

What Does Commercial Umbrella Insurance Cover?

Commercial umbrella insurance typically covers the same types of claims as your underlying liability policies, including bodily injury, property damage, personal injury, and advertising injury. It can also provide coverage for claims that may not be covered by your underlying policies, such as libel, slander, and false arrest.

What Is Not Covered by Business Umbrella Insurance

It’s important to note that commercial umbrella insurance does not cover everything. It typically does not cover claims related to intentional acts, contractual liabilities, or professional liabilities. It also does not cover claims that are covered by other types of insurance, such as workers’ compensation or commercial property insurance.

Call Larsen Insurance for a Free Insurance Quote!

Protecting your business with commercial umbrella insurance is a smart decision that can help safeguard your assets and finances. If you’re interested in learning more about commercial umbrella insurance or would like a free insurance quote, contact Larsen Insurance in Andover, Minnesota, at 763-783-1188. Our experienced agents can help you find the right coverage for your business needs.