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The Commercial Umbrella Policy – Not Just for Big Companies

By November 21, 2011August 22nd, 2018

Historically, the Commercial Umbrella Liability Policy has been thought to be only needed by very large business entities. Today, a different set of circumstances exists so small and medium size businesses are choosing to purchase this important coverage as well. Liability claims and court decisions involving millions of dollars are no longer uncommon; any business can be found legally responsible for this type of judgment. No business is immune. A Commercial Umbrella Liability Policy can provide your business with an additional layer of insurance protection to handle major losses.

A business owner may consider an accident that does not involve a fatality to be one that can be handled by their insurance policy. The reality is that such an accident may result in substantial medical care, lost income and other expenses. Can your business afford a payment that exceeds a million dollars? Think of accidents involving vehicles that, today, are much safer than 5 or 10 years ago. That means that accidental deaths are less likely while the chance of severe head injury has increased. Severe head trauma can send a claim’s cost soaring. It may take up to seven years to determine the ultimate extent of injury and recovery is often slow and sporadic. These elements combine to make regular insurance coverage insufficient.

A business may have auto liability coverage but insurance limits of more than $500,000 are rare. This is because insurers are reluctant to offer higher coverage at an affordable price. When the insurance coverage provided by a business auto policy is not enough to meet the amount of a loss, the business is responsible for the difference.

An Umbrella Liability policy could be the difference between bankruptcy and an on-going business venture. The Umbrella policy would take over where the business auto policy stopped, providing defense coverage and additional limits to pay large judgments.

Contact The Flanders Group today to discuss how securing this valuable coverage may be able to help preserve your business.