Many business owners rely on their general liability and commercial auto insurance alone to protect them from liability exposures and lawsuits, but what happens when those policy limits are not enough or when a loss occurs that those policies don’t cover?
A Commercial Umbrella policy provides broad liability coverage on top of your other policies to afford important protection against claims or judgments that are larger than your underlying auto or general liability limits.
What Umbrella Insurance Covers
Here are some examples of incidents an umbrella policy could cover if your underlying general liability or commercial auto insurance wasn’t enough:
– Your employee is making a delivery on your behalf and causes a serious multi-vehicle accident resulting in one fatality and 4 serious injuries. Your commercial auto insurance limit of $1,000,000 is not sufficient to even cover the medical bills and vehicle damages. Pain & suffering and Wrongful Death awards could approach $5,000,000.
– You fail to properly clean the range hood and ductwork in your restaurant’s kitchen, which results in a fire that destroys your entire building and severly damages the two adjacent buildings. You are sued by your landlord and the neighboring building owners for $3.5 million in property damage and loss of rents. You are also sued for $750,000 by the tenants in the damaged buildings for their loss of income and property damage. Your underlying general liability limit is inadequate to cover these damages. Fortunately, you have a $5,000,000 umbrella policy so your business assets are not exposed.
Umbrella policies also cover malicious prosecution, liable, defamation, wrongful entry, invasion of privacy and other harms that may be excluded by your underlying policies.
Sometimes the unthinkable happens. Don’t let your business be ruined by one unforseen event.
Contact an Agent today to see how Farmers of Flemington’s Commercial Umbrella policy can help protect your business.