A Comercial Umbrella Policy will extend your limits of business liability by $1,000,000 to well over $20,000,000. CGL - Commercial General Liability, Business Auto, BOP - Business Owners Policies cover you up to a certain amount, if the loss exceeds that, your business then becomes responsible unless you carry a Commercial Umbrella.
Commercial umbrellas require a minimum "Underlying Limit", the CGL, BOP and Business Auto policies are all considered underlying policies.
An example of where your Commercial Umbrella Policy might come into play:
You are the owner of a small pizza resturaunt and also provide a delivery service to your phone customers. One of your drivers using their own car for deliveries looks down to read an address off of the invoice and doesn't notice the red light ahead. The driver strikes a car broadside and there are 6 occupants who are seriously injured. Since driver was at the time working for your company, your business is liable for his mistake and is open to lawsuit. Luckily you have Hired and Non-Owned Auto coverage endorsed on your CGL policy with a limit of $1,000,000. Unfortunately 2 of the occupants of the other vehicle lost limbs and are seeking damages in excess of $2,000,000 each which is well beyond your $1,000,000 limit. In this example, the Commercial Umbrella Policy takes over at the $1,000,000 mark and pays out up to its own limit.
Need a quote or more information on Commercial Umbrellas? Please feel free to call us or submit an Online Quote Request!
