Umbrella Liability Insurance

Umbrella Liability Insurance 

The following factors can increase the cost of umbrella liability insurance:

  • Your business is open to the public and experiences lots of foot traffic, which increases the chance of a claim on your general liability policy. 
  • You regularly handle customer property, which places you at risk of a property damage lawsuit.
  • You own a fleet of heavily used commercial vehicles, which increases the chance of an auto liability claim. 
  • Your industry includes risky work that places your employees at risk of bodily injury, and you at risk of employer’s liability lawsuits.  

Commercial umbrella insurance increases the coverage limits of your underlying insurance policies in $1 million increments. Small businesses usually purchase umbrella insurance to fulfill contracts calling for limits that are above $2 million. 

It’s fairly common for a clients contract to call for a $5 million limit on a policy. In that case, an umbrella policy with a limit of $3 million would be added to a liability policy with a $2 million limit to reach the total requested amount.