Commercial Umbrella Insurance – Perform Your Business Without Risk
Every business brings a certain dose of risk. When you're collaborating with people all the time, the risk of injuries and property damage is higher, no matter how careful you are.
Even if you’re running a small business, you should consider purchasing an umbrella policy. But before you do that, let us give you an insight into the most important things about commercial umbrella insurance.
• Choose limits suitable for your business
– if your industry branch is hotel management or pharmaceutical manufacturing, consider higher limits for your umbrella policy. The bigger the business, the higher the chance of expensive lawsuits and bankruptcy. The best option is consulting your insurance agency
, which would give you all the necessary info.
• Consider necessary coverages
– choosing coverages is also essential when it comes to an umbrella policy. You should provide coverages that are not afforded by your primary insurance plan, and they depend on the business you run – for instance, if you run a brewery, consider liquor liability coverage, and if you own a boat aimed at entertaining clients, opt for the umbrella that comes with watercraft liability coverage.
• Shop around
– when you decide to go for umbrella insurance, the first step is going to the insurer who issued your general liability insurance policy. If they are not offering umbrellas or if you're not satisfied with their umbrella insurance quote, consider other agencies and see what they're offering.
• Be careful and ask questions
– even though the umbrella policy's language has become more simplified, it is important to read carefully and ask all the questions that you find crucial. Some umbrella policies include SIR (self-insured retention) which is the amount of money your firm will need to pay for any accident which is covered by the umbrella but not by the underlying policy plan.
• Match the dates of basic liability insurance and umbrella policy
– make sure the dates of both of your plans match; otherwise, the umbrella insurance can refuse to pay for the rest of the claim. For example, if your liability insurance is valid from January 1, 2019, to January 1, 2020, make the umbrella valid during the same period.
When it comes to commercial umbrella insurance cost
, it depends on various factors, like the carrier, the limits, and the coverages you would like to include to your premium. Most importantly, the business size and the industry are the ones that determine the annual insurance price.
The average umbrella insurance cost for small business goes from $500
, while more prominent companies and firms usually pay about $2000
or even more. Again, consult your insurance agency, and they will find the best solution for you and your business.