Commercial Umbrella Insurance

If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.

The rising costs of lawsuits and judgments are important for today’s business owner to consider. Catastrophic liability losses can happen to any business at any time, and a commercial umbrella policy protects you when those losses exceed your basic liability coverage. The time and effort you have taken to build your business is too important for it to disappear after one unforeseen event. Contact The Armstrong Company today about a commercial umbrella insurance policy.

What you need to know about commercial umbrella insurance

Commercial Umbrella helps you protect your assets by providing liability limits above and beyond your other policies. In some cases, it even broadens your protection. Due to the unpredictable nature of jury awards, The Armstrong Company recommends that your business insurance program include this coverage.

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What is Excess Liability Coverage?

This coverage provides extra liability limits over an Umbrella policy. This coverage typically follows the terms of the first underlying insurance policy.

There is a distinct difference between Umbrella and Excess Liability

Umbrella insurance coverage differs from excess insurance in terms of being a comprehensive addition to a business’s existing liability coverage. In addition to supplementing a company’s existing liability coverage as excess insurance does, umbrella coverage increases the coverage amounts for most all existing liability policies held by a company. This means that all areas of a company’s operations receive additional coverage as opposed to just one particular unit or area of a business. Umbrella coverage also fills in or covers any exclusions, limitations and deductibles found in a company’s existing underlying policies. As a result, umbrella insurance coverage differs as far as price goes when compared to excess insurance; umbrella coverage is more costly.

Who needs Excess Liability Coverage?

Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, worldwide presence, significant public exposure.

Talk to The Armstrong Company today about your business operations and we can advise you what kind of liability coverage you need to protect yourself and your company. Just give us a call at 310-530-0099 and we’ll help make sure you’re covered.

How much Umbrella Liability or Excess Liability Insurance should I purchase?

There are several metrics used to decide on adequate limits: total assets, market cap, nature of your business, historical claims in your business and your appetite for risk. There is no standard limit. Typically limits layers are 5, 10, 25, 50 & 100 million dollars. The initial 5 million dollars will be the most expensive layer. Some buyers carry higher limits when the pricing is down in a soft market and scale back when the hard market is evident.

Does my Umbrella or Excess company have to be the same as my primary General Liability provider?

Not at all. In some cases there may be a pricing advantage to have the first layer with your primary general liability carrier. In other cases, your primary carrier may not be willing to take on the additional layer of risk. As the limits get higher, pricing may be more efficient with multiple carriers in 5 million dollar increments.

Important Considerations.

There is no standard umbrella policy. Therefore, coverage comparison is a must. Our staff has considerable commercial insurance experience.  We also have the knowledge and industry contacts necessary to tailor a program that meets your needs at a competitive cost.  Key areas of comparison are:

  • Exclusions
  • Retentions; How much risk do you want to retain?
  • Whether a follow-form is offered over unusual underlying exposures
  • Limits
  • Defense Cost (in or outside of policy limits) This is critical because a lengthy Defense may exhaust the policy limits and leave no coverage for the actual damages.
  • Pays on behalf or reimburses. Do you have the ability to pay the claim and then wait to be reimbursed by your carrier?

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