Commercial umbrella insurance covers large, unexpected events that can have devastating impacts on your business, brand reputation and financial stability. While standard liability policies can help protect a company from a broad range of situations, there are certain times when losses may exceed what primary insurance can fully cover. From damaging multimillion-dollar lawsuits to auto accidents to product liability claims, protecting your organization means preparing and planning for the worst-case scenario. Travelers commercial umbrella and excess liability solutions can provide you with extra security and peace of mind that your business is properly protected in the event of a catastrophe.
What are the benefits of commercial umbrella insurance?
A commercial umbrella liability policy supplements your existing policy’s general liability, auto liability and employer’s liability limits. The benefits of a Travelers commercial umbrella policy are increased limits in excess of standard primary policies, replacement of primary policies if limits are used up by covered losses and broader coverage than primary policies for certain losses.
Our commercial umbrella and excess liability solutions include:
- A/B umbrella
- Excess liability
- Excess and surplus lines: Northfield
Who is commercial umbrella coverage right for?
Travelers offers commercial umbrella and excess insurance coverage across all industries. Find a policy type that’s right for you.
Commercial umbrella liability insurance cost
There are many varying factors that contribute to the cost of commercial umbrella liability insurance, including the size of your business, the amount of risk associated with your industry and the number of policies that you want covered. The amount of coverage that you purchase will also influence the cost. Commercial umbrella insurance typically increases coverage in $1 million increments. Therefore, a $1 million increase in coverage will cost less than a $4 million increase in coverage. A commercial umbrella policy can be less expensive than increasing the limits on your underlying policies.
Commercial umbrella policy coverage
Commercial umbrella insurance is designed to provide extra liability coverage above and beyond the protection offered in your general liability insurance, employer’s liability insurance and commercial auto liability insurance policies. If your underlying coverage reaches its limits due to multiple claims or a large settlement during the policy period, your commercial umbrella policy coverage steps in to cover any additional, up to its own limits. Without commercial umbrella coverage, you would have to pay out of pocket when your underlying insurance policy limits are exhausted. Commercial umbrella insurance coverage is a smart way to reduce the risk of the damage that large legal judgments or multiple insurance claims could cause to your organization.
Commercial umbrella coverage can provide:
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An affordable second source of protection for your business beyond your primary insurance.
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Higher limits of liability for automobile, general liability and employer's liability.
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Coverage for exposure gaps by kicking in where your primary insurance ends.
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Small, midsized and large organizations with limits up to $25 million with the ability to write unsupported (monoline) policies.
You’ll be glad you have commercial umbrella if:
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A customer is injured falling down slippery steps, causing injuries that require long-term care.
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An employee in an organization's vehicle rushes through a traffic light, resulting in an accident that causes severe injury and property damage.
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During the course of a workday, one of your employees causes an accident that severely injures a vendor.
VIDEO
What is umbrella insurance?
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SPEAKER 1: What is umbrella insurance?
Take a moment to think about the catastrophic impact a large lawsuit could have on your business. There's no way to predict what you might be required to pay in damages and just one lawsuit can put your business assets at risk. Umbrella insurance provides an additional layer of financial protection over and above the coverage limits of your other liability policies.
Say one of your employees uses copyrighted music in an ad for your business without securing licensing rights. The owner of the copyright sues, and the judgment is against your business for 1.5 million dollars in damages. If your liability insurance has a limit of 1 million dollars you would be responsible for the balance. A commercial umbrella policy is designed to bridge the gap and cover the costs of the loss up to the umbrella policies limit, and an umbrella policy is very affordable. It's a small investment that can help protect your assets and keep your business in business.
To get started with commercial umbrella coverage and other business insurance solutions, contact a Travelers independent agent or visit Travelers.com.
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Commercial umbrella and excess liability insurance FAQs
Umbrella insurance is liability coverage beyond the limits of your other liability policies. Businesses may have a higher liability risk because they offer products or services to customers – so protecting you and your business is essential to keeping things running smoothly in the event of an unforeseen circumstance. In addition to the standard liability insurance coverages purchased by business owners, like general liability, employer's liability and auto, umbrella insurance can offer extra protection above and beyond the limits of these standard policies to keep your assets safe.
Umbrella insurance is recommended for business owners because businesses face risks of being sued, whether by customers, other businesses or even employees. Generally, anyone who owns property, has significant assets or engages in any type of behavior that generates risk (such as running a business) should strongly consider umbrella insurance. Just one hefty lawsuit can impact your current assets and your future earning potential. If you’re sued for a significant amount of money and found liable, and you don’t have enough liability insurance coverage to cover the cost, you may be responsible for the amount not covered by your liability policy.
You can usually purchase an umbrella policy from the same insurance company that issued your other business policies. Insurance companies often require you to hold your primary insurance coverage with them in order to add an umbrella insurance policy. You should also expect to maintain certain limits of liability for your primary liability coverage in order to add the extra coverage provided with an umbrella policy
The cost is largely determined by the policy limit you select and the specific risks facing your type of business. Coverage levels typically start at $1 million and can go well beyond, depending on your needs.
Deciding how much extra liability coverage you need will depend on several factors, and an experienced independent insurance agent can help you decide what you need.
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How risky is your business? A business that mass-produces a product, engages in advice or consultation, has a hazardous work environment for employees or frequently operates motor vehicles is likely at a higher risk of being sued. These types of activities provide good reasons for purchasing an umbrella policy.
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What is the value of your business assets? Take a look at what your business owns – including real property, equipment, furniture and other possessions. Generally, the higher the value of those assets, the higher the umbrella policy limits your business will need in order to protect your finances. You should at least have enough insurance to replace your company’s total assets.
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How would loss of future income impact you? It’s important to consider that a significant lawsuit could cost you more than your current assets. It could threaten your potential future income, too. Factor this in when deciding how much coverage you need on your umbrella policy.
While an umbrella insurance policy can protect you in case a liability claim exceeds your primary policies coverage, it does not shield you from all legal risk. Umbrella policies generally cover liability that stems from business activities and business property that are covered by your primary policies. Things like uninsured motorists and certain instances of bodily injury or property damage may not be covered, so it’s important to discuss what is and isn’t covered with your insurance agent when deciding on an umbrella policy coverage.
Many businesses cannot get the insurance coverage they require in the standard lines marketplace for reasons like multiple claims, a lack of history or a unique classification. With more than 40 years of experience, Northfield is able to provide a wide range of coverage for hard-to-place risks so companies can continue to grow with the confidence that they’re properly protected.
Even small businesses can have big liability exposures, which is why Travelers A/B Umbrella is available as part of our wide range of small business solutions to help you grow and stay protected.
In the event you may require an extra layer of liability protection beyond what primary insurance may cover, Travelers offers excess liability to safeguard your business from potential calamity.
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Unfortunately, mistakes can happen. Protect your business from liability risks resulting from professional services, advice or recommendations provided by your business.
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