Commercial Umbrella Insurance in Fairhope, AL

Bearing responsibility for other parties’ losses and damages can significantly impact your business’s financial situation. This type of insurance can be a critical investment for companies across all sectors, as being liable for an incident that negatively affects a client, customer or other third party could have dire ramifications. To ensure your business has ideal coverage, consider the following overview of commercial umbrella insurance.

What Is Commercial Umbrella Insurance?

Like many types of insurance, a commercial umbrella policy acts as a legal agreement between your business and its carrier. After purchasing a policy, you maintain coverage through regular (e.g., monthly) premiums. In return, your insurer may provide payouts to help limit losses you might have otherwise had to pay out of pocket.

What Does My Policy Cover?

Also known as business umbrella insurance, these policies essentially act as a secondary layer of liability coverage. Should your company be at fault for accidents or other incidents affecting other parties, resulting losses could exceed the limits of other policies (e.g., general liability insurance and commercial auto insurance). In such situations, your commercial umbrella insurance can provide additional coverage to offset remaining costs.

Specifically, your policy may help pay for outstanding losses involving the following:

• Third-party bodily injuries

• Third-party property damage

• Legal expenses (e.g. attorney fees, court costs, settlements and judgments)

How Does This Type of Coverage Work?

Commercial umbrella insurance is a form of backup coverage for other policies that include liability coverage. For example, commercial auto insurance typically includes liability coverage for third-party injuries and property damage for which your company may be responsible. However, given the potentially catastrophic nature of automobile accidents, the fiscal ramifications of an incident could exceed your commercial auto policy limits. In these situations, without commercial umbrella coverage, you’d need to pay the remaining costs out of pocket.

Learn More

Contact Stillman Insurance Group today to get a quote.