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What is an umbrella policy?

An umbrella policy is defined as a policy to give you additional coverage for your current policies. The all-important Commercial Umbrella Policy provides an additional layer of liability protection for a business. There are numerous reasons to purchase this protection but in most

An umbrella policy is defined as a policy to give you additional coverage for your current policies. The all-important Commercial Umbrella Policy provides an additional layer of liability protection for a business. There are numerous reasons to purchase this protection but in most cases, it is purchased as a requirement of one’s customers or one’s bank.

For instance, if you are a subcontractor offering a service to a general contractor, the general contractor may require you to carry five million dollars in liability coverage for your business. If your liability limit limits are the typical $2 million limit, then your business will need to purchase an additional $3 million dollar umbrella to satisfy the requirements of the general contractor.

If you are concerned that an accident, theft or lawsuit may occur that your general policy may not totally cover, commercial umbrella insurance is probably a good choice for you. A complete commercial umbrella plan will cover you for just about any situation you can think of.

Commercial umbrella (aka excess) liability insurance is an important source of protection that supplements the limits of an insured’s underlyingBremen Commercial Umbrella Insurance policies such as general liability, automobile liability, and employers liability. Umbrellas also protect insureds from exclusions and gaps that exist in their primary liability insurance. Covered causes of loss that are not normally included in primary policies are subject to a self-insured retention (SIR), which is the responsibility of the insured to pay. SIRs in the amounts of $10,000 or $25,000 are common. An umbrella policy’s coverage is triggered when the limits of the underlying insurance have been exhausted. Less commonly, an umbrella may also respond to a claim that is not covered by an underlying policy, but only when the loss amount exceeds the self-insured retention.

A typical commercial umbrella liability policy offers features such as worldwide coverage; personal injury coverage; blanket contractual liability protection (for both written and oral agreements); care, custody, and control coverage; non-owned aircraft liability; watercraft liability; advertisers liability; liquor law liability; XCU liability; and an extension of protection to additional insureds.

Underwriters and companies that issue umbrella coverage have a primary objective of dovetailing their excess program with the newer commercial general liability forms (both the claims-made and occurrence versions). They have a major stake in ensuring that their policies carry out their coverage intent without problems and uncertainties. Agents, brokers, consultants, and risk managers share the responsibility to verify that the coverage issued fills their clients’ coverage needs.

What does an umbrella policy cover?

The Umbrella policy will provide the additional layer of coverage for the business’ general liability and auto liability as well. The Umbrella policy is the inexpensive way to extend your coverage to the limits required by your customer or contractor.

This policy makes a lot of sense even if not required. Any customer can sue your business for more than the limit of your regular Business Owners Policy, General Liability Policy or Commercial Auto Liability. In this case, when the limit of your underlying coverage is breached, the Umbrella policy will take over.

What else will it cover?

The Umbrella policy is also available to pay for more than just settlement and court awarded damages. The policy will also pay up to the limit defense costs if your company is named in a large legal action. The business owner should always be reminded that the first cost of doing business is defending itself in the event that a someone brings an action against it.

What else will it cover?The Umbrella policy is also available to pay for more than just settlement and court awarded damages. The policy will also pay up to the limit defense costs if your company is named in a large legal action. The business owner should always be reminded that the first cost of doing business is defending itself in the event that a someone brings an action against it.

This policy makes a lot of sense even if not required. Any customer can sue your business for more than the limit of your regular Business Owners Policy, General Liability Policy or Commercial Auto Liability. In this case, when the limit of your underlying coverage is breached, the Umbrella policy will take over.What are exclusions to the policy?

What are exclusions to the policy?

It is important to note however, that most umbrella policies will exclude coverage for employment practices liability, products liability, workers’ compensation (speak to your agent as to how to purchase these very important coverages). Many Umbrella policies, however, offer professional liability coverage as an optional feature.

This policy makes a lot of sense even if not required. Any customer can sue your business for more than the limit of your regular Business Owners Policy, General Liability Policy or Commercial Auto Liability. In this case, when the limit of your underlying coverage is breached, the Umbrella policy will take over.

Do I need umbrella insurance?There is no one size fits all answer to this, you’ll have to talk to your insurance agent and see if you’re regular coverage will be enough for your current needs. In many cases what you have now will be enough. But there are many business owners who have told that they think getting umbrella insurance has been worth it helping their business during trying times.

How much does umbrella insurance cost? Since the Umbrella policy does not kick in until the underlying policy limit is breached, the cost for the additional coverage is much less expensive. It makes sense for any business to consider an Umbrella policy as part of their everyday coverage rather than waiting until a customer or general contractor requires it.

Since the Umbrella policy does not kick in until the underlying policy limit is breached, the cost for the additional coverage is much less expensive. It makes sense for any business to consider an Umbrella policy as part of their everyday coverage rather than waiting until a customer or general contractor requires it.

There is no one size fits all answer to this, you’ll have to talk to your insurance agent and see if you’re regular coverage will be enough for your current needs. In many cases what you have now will be enough. But there are many business owners who have told that they think getting umbrella insurance has been worth it helping their business during trying times.How much does umbrella insurance cost?[/x_custom_headline][x_text]Since the Umbrella policy does not kick in until the underlying policy limit is breached, the cost for the additional coverage is much less expensive. It makes sense for any business to consider an Umbrella policy as part of their everyday coverage rather than waiting until a customer or general contractor requires it.

How much does umbrella insurance cost?

Since the Umbrella policy does not kick in until the underlying policy limit is breached, the cost for the additional coverage is much less expensive. It makes sense for any business to consider an Umbrella policy as part of their everyday coverage rather than waiting until a customer or general contractor requires it.

This policy makes a lot of sense even if not required. Any customer can sue your business for more than the limit of your regular Business Owners Policy, General Liability Policy or Commercial Auto Liability. In this case, when the limit of your underlying coverage is breached, the Umbrella policy will take over.

How much does umbrella insurance cost?

Since the Umbrella policy does not kick in until the underlying policy limit is breached, the cost for the additional coverage is much less expensive. It makes sense for any business to consider an Umbrella policy as part of their everyday coverage rather than waiting until a customer or general contractor requires it.

This policy makes a lot of sense even if not required. Any customer can sue your business for more than the limit of your regular Business Owners Policy, General Liability Policy or Commercial Auto Liability. In this case, when the limit of your underlying coverage is breached, the Umbrella policy will take over.

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Baltimore, MD 21209
East Insurance Group LLC ,
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