What is Commercial Umbrella Insurance?
Massachusetts businesses have access to substantial amounts of coverage through primary insurance policies, but there’s normally an upper limit to how much protection these policies will afford. When businesses want more protection than a primary policy makes available, commercial umbrella insurance may offer the additional coverage that’s desired.
Commercial umbrella insurance is a supplemental type of commercial liability insurance. These policies normally serve as secondary policies, often providing coverage only after any applicable primary coverage is exhausted. The primary policies that a commercial umbrella policy supplements are also called “underlying policies.”
What Businesses in Massachusetts Should Have Business Umbrella Insurance?
There are many businesses in Massachusetts that could benefit from having business umbrella insurance in place, for almost any business could be named in a liability lawsuit and these suits can be expensive. Should the legal costs and settlement associated with a covered lawsuit exceed the limits of a primary policy, whether a business has an umbrella policy might be the difference between surviving the lawsuit and declaring bankruptcy.
The following are some specific examples of businesses that might want to consider purchasing a business umbrella insurance policy:
- Professional workers, for they frequently don’t have enough resources to fight a major liability suit
- Nonprofit organizations, for they also frequently don’t have many resources to fight a major liability suit with
- Businesses with significant assets, for they’re sometimes targeted in opportunistic liability suits
- Companies operating in high-risk industries, for they’re more likely to face a liability claim or suit
- Municipal governments, for they could be named in any number of potential liability suits
Organizations that are unsure whether business umbrella insurance makes sense for them should speak with an insurance agent who specializes in this type of commercial coverage. A specialized agent will be able to help organizations appreciate their full risk exposure and determine whether that exposure justifies purchasing supplemental liability protection. If it does, an agent can also help organizations select whatever business umbrella policy best meets their particular needs.