Commercial Umbrella Insurance in Florida by Kelly Insurance

What is Commercial Umbrella Insurance?

Commercial umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of other liability policies held by a business. It is designed to protect a business against catastrophic losses and large liability claims that exceed the limits of primary insurance policies, such as general liability, auto liability, and employer's liability insurance. Essentially, it kicks in when the limits of those primary policies have been exhausted, providing an extra layer of financial protection. This type of insurance is particularly valuable for businesses facing significant risks or operating in industries prone to lawsuits with high settlement costs.

What is Typically Covered by Commercial Umbrella Insurance?

Commercial umbrella insurance provides additional liability coverage beyond the limits of primary insurance policies, such as general liability, commercial auto liability, and employers’ liability. Here are the typical coverages included under a commercial umbrella insurance policy:

Excess Liability Coverage: The primary purpose of commercial umbrella insurance is to provide additional liability coverage when the limits of underlying primary policies are exhausted due to a large claim or multiple claims.

Legal Costs: Coverage for legal defense costs is typically included. This can cover attorney fees, court costs, and other legal expenses incurred in defending against covered claims.

Bodily Injury Liability: Covers costs associated with bodily injuries caused to others for which your business is found legally responsible. This can include medical expenses, rehabilitation costs, and even legal settlements or judgments.

Property Damage Liability: Covers costs related to damage to someone else's property caused by your business operations or products. This includes repair or replacement costs and legal settlements or judgments.

Employers' Liability: Covers claims related to employee injuries or illnesses that are not covered by workers' compensation insurance. This can include claims alleging negligence in providing a safe work environment.

Contractual Liability: Covers liabilities assumed under certain types of contracts, such as lease agreements or construction contracts, where your business agrees to assume responsibility for certain damages or losses.

General Liability Insurance for Contractors

Business owners policies, or BOPs, are obtained by many contractors; however, your company might not require all of the coverages included in a BOP. General liability insurance might be a preferable option, for example, if you don’t need property insurance and aren’t in charge of paying wages or running costs. By offering the risk protection you require without overburdening you with coverages you don’t need, these products help you save money.

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