What is commercial umbrella insurance and do I need it for my Atlanta business?

Umbrella insurance adds liability coverage for your business.

Umbrella insurance adds liability coverage for your business.Thinking about worst-case scenarios can be frightening and unnerving. When your business is cruising along and doing well, everything is great. But sometimes things happen and disaster can strike. Of course, you have business insurance to protect your company, but what if a claim comes along and blows your insurance limits right out of the water? Being stuck in a situation in which you don’t have enough insurance would not be good. However, there is a type of coverage that can supplement your current levels of insurance and even provide coverage in areas you don’t have it. It’s called umbrella insurance, and no, it’s not insurance for umbrellas (the name is a bit misleading.) We’ll explain what umbrella insurance is, how it can protect your business, and why you shouldn’t overlook it when you’re buying business insurance.

What is commercial umbrella insurance?

Commercial umbrella insurance can protect your business from gaps in your coverage and from expensive lawsuits. Basically, businesses use umbrella insurance to expand and back up the coverage they have with their existing policies. It’s a way to add extra coverage to your insurance.

What does commercial umbrella insurance do?

There are a few ways in which umbrella insurance can help your business. Umbrella insurance…

1. Provides extra coverage if you have a claim that goes above the limits of your existing policy.

Umbrella insurance is, to put it simply, extra coverage that sits on top of your underlying insurance policy. It can help protect your business from huge lawsuits that could be financially devastating to a business by adding coverage to your policy.

It’s easiest to illustrate with an example.

Let’s say that you have a whopper of a general liability claim – like a $4 million claim. It’s not good. Your business, of course, has general liability insurance, but your policy is only for $1 million. So, to do some quick math, that means there’s still $3 million to be accounted for. Now, let’s say that your business has a $5 million umbrella policy. What would happen is that your general liability insurance would pay its $1 million and your umbrella could then pay the remaining $3 million. So, there you go – an example of how umbrella insurance can help you out of a tight spot.

2. Can give you coverage in areas where you don’t have coverage.

If you have a claim in an area that’s not covered by your underlying policy, umbrella insurance can provide you with the coverage you need. But if you’re using your umbrella insurance in this way, you may have to pay a self-insured retention (or SIR) which is similar to a deductible. Basically, it means that you’re responsible for paying a portion of the claim.

Umbrella insurance and lawsuits.

Our society has become more and more likely to launch lawsuits, can come with some hefty financial judgments or damages. Lawsuits can be super expensive and potentially devastating to a business. And what if your business is found liable? You could be facing court-ordered damages or a settlement. But that’s where umbrella can help you.

Umbrella insurance is a way for business owners to get an additional measure of protection for their companies. It gives extra liability coverage that sits on top of your existing insurance policy. Yes, the odds of a huge, catastrophic claim happening to your business might be low, but it’s still important to anticipate and prepare for the worst. You never know what’s going to happen (unless you can see the future, which would be great), and umbrella insurance can protect your business.

If you’d like to save money on your business insurance, we can help. Our team of agents can help you shop for the best possible rate for your insurance – and we’ll do our best to make insurance easy. All you have to do to get business insurance quotes is fill out our online form or give us a call today.

What is personal umbrella liability insurance and why should you consider it?

Umbrella insurance provides additional coverage.

Umbrella insurance provides additional coverage.

You know how important it is to be insured. You have home insurance and car insurance. You’re happy with your coverage and your premiums. But have you ever considered if your limits of coverage on those liability policies are enough? What if there comes a day when you have a claim that blows those limits out of the water? That’s when you’d need a personal umbrella insurance policy.

What’s an umbrella policy?

Indulge us for a moment in a corny analogy.

Picture your home insurance (for example) as a raincoat. You wear it to protect you from any surprise rainstorms that could happen, so you’re covered. But what if it starts to pour all of a sudden and you’re trapped in a rainstorm that’s heavier than any you’ve ever experienced? Your raincoat might not be enough to keep you dry, and that’s why you’d want an umbrella to go along with it. It’s an added layer of protection against the unforeseen storm.

Umbrella insurance can protect you against big losses.

What would umbrella insurance do?

Umbrella insurance kicks in where your underlying policy left off if you have a claim that exceeds the limit on that underlying policy. Instead of you having to cover the leftover expenses from that lawsuit, your umbrella insurance can take care of it. You’d be protected. Don’t underestimate how expensive court costs and liability situations can be – the costs can skyrocket. Your umbrella insurance is there to take the fall for you – up to the limit on that policy, naturally.

How much umbrella insurance do you need?

To determine how much umbrella insurance is right for you, you have to consider your assets and your risks. For example, do you have a teenaged driver? Have a dog that could bite someone? Have a pool? (By the way, dogs and home insurance don’t always get along. Umbrella policies can help dog owners mitigate their risk.)  Basically, think of things that could put you on the receiving end of a lawsuit – in other words, personal risks that you face in your day-to-day life.

How much does umbrella insurance cost?

When you think about how much extra coverage umbrella provides, the extra cost to your premium is very reasonable.

Two factors that contribute to the cost are:

  • The value of the policy (premiums will usually go up by about $50 or $75 for each million)
  • Your personal risk factors. For example, do you have driving tickets on your record? What does your credit score look like? (Yes, your credit score can have an effect on your insurance.) The cleaner your record, the less of a risk you are to an insurance company.

Pro tip: To save money on your umbrella policy by possibly getting a discount, get your umbrella policy from the same company that writes your standard policies.

Get peace of mind with umbrella insurance.

Even though homeowners and auto insurance provide a certain level of liability protection, there are many disastrous situations that might completely exceed the coverage you currently have. Imagine the unimaginable. Would your current policy be enough to cover all the expenses? Or would you be left to foot a hefty portion of the bill? An umbrella policy will protect you from a major loss.

If you’re interested in getting a personal umbrella insurance policy, let us know! Just fill out our quote form or give us a call today and we’ll be happy to help you with any of your insurance needs. We want you to be able to enjoy peace of mind knowing that you’re protected from any big disasters that come your way.