Commercial Umbrella Liability

How much Liability Insurance is enough?

There’s no easy answer to that question. But if you are sued for more liability coverage than you carry, your assets could be seized.

Commercial Umbrella Liability is a broad, flexible, high limit liability coverage designed to supplement your operation’s primary liability protection. This type of policy is designed to accomplish three major functions with the net effect being to create an “Umbrella” of blanket catastrophe excess protection.

These three functions Commercial Umbrella Liability are:

1. Excess coverage over other liability insurance carried, such other liability insurance being referred to as underlying or primary coverage.
2. Coverage of otherwise uninsured exposures. This function is usually referred to as a “drop-down”.
3. Automatic replacement of the aggregate limits in underlying policies, when such limits have been reduced or exhausted through payment of losses.

Once the primary limits are reached in a lawsuit, the courts will order corporate assets to be seized in order to pay for the balance of a claim. This is where Commercial Umbrella Liability provides vital protection.

Talk to Binks about Commercial Umbrella Liability

Ask us about an Umbrella protection before renewing your commercial insurance program. You may be pleasantly surprised at how a properly constructed liability insurance program can provide you with better protection, allowing you to proceed knowing your firm is properly protected against injury and property damage lawsuits.