Umbrella/Excess Liability

Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. In other words, commercial umbrella insurance complements your other liability coverages by taking over when your other liability coverage limits have been reached.

For example, if your company is found liable for a customer’s injury at your place of business and you are sued for $1.5 million but only have $1 million in liability coverage, a commercial umbrella policy could make up for the $500,000 shortfall, subject to the policy’s coverage limits.

Commercial umbrella insurance cost

A commercial umbrella insurance policy with $1 million in coverage can cost as little as a few hundred dollars a year. However, umbrella insurance isn’t offered as a stand-alone coverage; it works in conjunction with your other liability coverages, such as general liability insurance –which is your most expensive policy.

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What does commercial umbrella insurance cover?

Commercial umbrella insurance covers the same types of costs as business liability insurance, such as medical expenses, attorney fees and damages when your company faces a lawsuit.

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Reference: https://www.nationwide.com/lc/resources/small-business/articles/what-is-commercial-umbrella-insurance