Commercial umbrella insurance provides additional protection when the costs of a covered liability claim exceed the limits of your primary business insurance policies. Without this extra layer of coverage, you’d be responsible for paying the difference out of pocket.
This type of policy helps cover:
Legal fees
Medical expenses
Property damage to others
Court judgments and settlements
It works by extending the coverage limits of policies like general liability or commercial auto insurance. For instance, if a claim totals $1.5 million but your primary policy only covers $1 million, your umbrella policy could cover the remaining $500,000 up to its own limit keeping your business protected from major financial setbacks.
