Call Us (915) 599-2900 ☰ ˟
Logo
(915) 599-2900
  • Home
  • Online Quote
    • BusinessImage of right arrow
      • Commercial Quote
      • Workers Compensation Form
    • AutomobileImage of right arrow
      • Instant Auto Quote (Quicker Results)
      • Manual Auto Quote (Better Pricing)
    • HomeownersImage of right arrow
      • Homeowners Quote
    • Life & HealthImage of right arrow
      • Life Insurance Quote
    • BondsImage of right arrow
      • Bond Form
    • Contractors
  • About Us
    • About Us
    • Our Pillars
    • Mt. Franklin Insurance In The News
    • Testimonials
    • Contact Us
    • Careers
  • Blog
  • In the community
  • Español
    • Cotizaciónes en linea
    • Líneas Comerciales
    • Líneas Personales
    • Seguros de auto
    • Seguros de salud y vida
    • Seguro para propietarios de viviendas
  • Make a Payment
Home > Blog > Why You Need Commercial Umbrella Insurance
THURSDAY, JANUARY 14, 2021

Why You Need Commercial Umbrella Insurance

Why You Need Commercial Umbrella Insurance 

Every business must have liability insurance, and the starting point is a general liability policy. However, while general liability insurance can prove essential to your long-term financial security, you should still not consider it a stopping point.

Instead, you will likely need to buy other coverage, including a commercial umbrella insurance policy. Consider why investing in a commercial umbrella plan will make your risk management strategy a lot more comprehensive.

 

 

 

Where General Liability Insurance Stops

When putting together your business insurance package, liability insurance is one of your foundation stones. It will pay for bodily injuries or property damage that you might cause to others through your negligence, products or completed operations.

Even if you didn’t mean for a problem to occur, that doesn’t mean you won’t have to repay someone because they accidentally got hurt. Liability insurance will make sure that you have the money available to reach a settlement with this party, or even fight a lawsuit if one occurs.

However, liability insurance is not all-encompassing. The policy will not cover all claims of negligence that might cause someone harm. Additionally, they will contain limits on how much they will pay you for a qualifying loss. Therefore, if a claim either is not covered by, or exceeds the value of, your liability policy, then you might not have the coverage you need. It is at this point that umbrella insurance becomes necessary.

The Necessity of Umbrella Insurance

A commercial umbrella insurance policy is designed to enhance your existing liability benefits. Therefore, it can essentially take over once you are confronted with the limits of your standard policy.

Suppose, for example, that you have $1 million in bodily injury liability coverage. However, a customer slips and falls in your store, and then sues you for $2 million. That is $1 million more than your liability coverage will pay. As a result, if you don’t have the benefits offered by commercial umbrella insurance, then you will have to pay for your losses out of pocket.

However, your umbrella policy will be able to step in and assist you with the additional cost that is not covered by your standard benefits. The way it works is that you will first file against your standard liability benefits, which will then pay up to their limits. After you have reached those limits, you can file against your umbrella coverage for the remaining cost of the claim. In some cases, you will be able to use your umbrella benefits to cover the full cost of a claim that standard liability insurance won’t cover.

Our job is to help you customize your commercial umbrella benefits to your advantage. That’s why we’re committed to helping you determine both where your standard liability coverage limits end, and where you can benefit from additional coverage.

Call us today at (915) 599-2900 or visit www.MtFranklin.com to see how we can help you.

 

Posted 8:00 AM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020

  • elpasoinsurance(2)
  • cheapinsurance(2)
  • mtfranklininsurance(2)
  • autoinsurance(1)
  • mt.franklin(1)
  • saveonauto(1)
  • saveonliabilityinsurance(1)
  • liabilityinsurance(1)
  • easywaystosave(1)
  • mtfranklin(1)
  • insuranceelpaso(1)
  • (1)
  • saveoninusrance(1)

View Mobile Version
Logo

Phone: (915) 599-2900
Fax: (915) 921-5550
E-mail: Info@MtFranklin.com


Social Icon Social Icon Social Icon
© Copyright. All rights reserved | Powered by Insurance Website Builder