Commercial Umbrella

If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.

The rising costs of lawsuits and judgments are important for today’s business owner to consider. Catastrophic liability losses can happen to any business at any time, and a commercial umbrella policy protects you when those losses exceed your basic liability coverage. The time and effort you have taken to build your business is too important for it to disappear after one unforeseen event.

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Excess liability provides coverage that supplements the limits of an insured’s General Liability, Automobile Liability, and Employers Liability policies. An Excess policy’s coverage is triggered when the limits of the underlying insurance have been exhausted, or when a claim develops that is not covered by an underlying policy and exceeds the self- insured retention.

Excess Liability Coverage—Excess Liability Policy

Covers only excess liability over scheduled policies. This policy is very similar to an umbrella but all terms and conditions are defined in the underlying coverages. This policy merely extends the limits. Coverage is provided by many carriers using their own forms. Key areas of comparisons are exclusions and following form terms.

Automotive operations should carry either an umbrella or an excess policy. If unusual terms have been negotiated in the underlying policy, the excess liability could provide the most complete coverage; but if the underlying is standard, the umbrella may provide some gap coverage not available in the excess.

(Refer to ACORD 131) (Refer to PF&M Section 275.1)

Excess Liability Coverage—Umbrella Policy

An umbrella serves two purposes. First, it provides excess liability limit over the scheduled underlying policies. Second, it fills some gaps in the underlying coverage. There is no standard umbrella policy. Therefore, coverage comparison is a must. Key areas of comparison are exclusions, deductible, whether a follow-form is offered over unusual underlying exposures, limits, and defense cost (in or out of the limits).

Automotive operations should carry either an umbrella or an excess liability policy because of the potential for catastrophic loss due to the number of persons in the establishments who could be damaged.

(Refer to ACORD 131) (Refer to PF&M Section 275.1)