What is a Business Umbrella Policy?
A business umbrella policy picks up where your business auto liability, general liability or other liability coverage stops. Umbrella insurance is an inexpensive way to provide extra coverage against bodily injury and/or property damage
It Is Important to Customize your Umbrella Coverage to fit your Company
Since no two businesses are alike it is important to customize your umbrella to fit your company. Professional practices, such as a dentist office or a law firm, operate very differently than an auto body repair company full of machinery. Their respective insurance needs are different, too.
Owners of a manufacturing facility might need an umbrella policy to offer expanded coverage for additional liability, but an advertising agency that entertains clients might need expanded liquor liability limits.
How Commercial Umbrella Insurance Works
Commercial umbrella policies serve two distinct purposes.
It expands the limit that your company already has in its existing, or underlying, liability policies. If your general liability policy offers $2 million coverage per occurrence or $4 million total, you could expand those limits to $3 million per occurrence and $5 million aggregate with a $1 million umbrella policy.
It also broadens coverage for things that your underlying policies may not cover. If your auto liability policy covers accidents that might occur in a specific area, an umbrella policy could expand the coverage territory.
The above information is cited from the following sources
Nationwide Insurance (2015, July) “Cover Your Business with Umbrella Liability Insurance” Retrieved from http://www.nationwide.com/umbrella-insurance-policy.jsp
Nationwide Insurance (2015, July) “Cover Your Business with Umbrella Liability Insurance” Retrieved from http://www.nationwide.com/umbrella-insurance-policies.jsp