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What would you do if your business was sued for millions of dollars?
It’s a question that every business owner should ask themselves. And the answer is, you would hope that you’re covered by a commercial umbrella policy.
But what is not covered by a commercial umbrella policy?
Read on to find out.
Property Damage
: Generally, commercial umbrella policies are used to supplement your existing liability insurance. They provide additional coverage for things like bodily injury and property damage that may not be included in the regular policy. However, they typically do not cover any direct property damage caused by you or anyone else connected with your business. This would include damage to buildings, contents, vehicles, equipment and inventory due to fire, vandalism or theft.Bodily Injury
: Commercial umbrella policies also do not cover bodily injury claims resulting from injuries suffered while on your business premises or while using a product or service offered by your business. These types of cases can be costly and could easily surpass the limits of coverage provided by a regular liability insurance policy.Personal Injury
: On top of this, commercial umbrella policies do not cover personal injury claims such as libel, slander and false advertising. These types of cases are typically excluded from regular liability insurance due to their high potential for costly legal fees and damages.Conclusion
: In conclusion, a commercial umbrella policy should be seen as an additional layer of protection for your business against certain types of risks. It will provide coverage for certain types of bodily injuries or property damage that may not be included in the regular policy – but it does not cover all types of losses from these events.Related FAQs
Generally, commercial umbrella policies provide additional coverage up to a certain limit. This limit is set by the policy and can vary greatly depending on your business’s size and type of operations. Typically, the limits are much higher than those offered by regular liability insurance policies.
Some of the more common exclusions include property damage caused by your business, bodily injury claims resulting from accidents or negligence on your premises, personal injury claims such as libel or slander, and any losses related to professional services provided by your business.
Yes, you will most likely need a separate policy for property damage. Most commercial umbrella policies are designed to provide additional coverage for liability claims only.
Yes, each commercial umbrella policy has an upper limit that determines how much coverage is available. This is typically much higher than what can be found in regular liability insurance policies.
Generally, commercial umbrella policies will cover bodily injury and certain types of property damage resulting from negligence or accidents occurring on your business premises or with products/services offered by your business.
A commercial umbrella policy will not cover any direct property damage caused by your business, personal injury claims such as libel or slander, and losses related to professional services offered by your business.
No, the coverage provided by a commercial umbrella policy is tailored to each individual business. The specifics of the coverage vary depending on the size and nature of the operations.
Yes, there are typically additional costs associated with a commercial umbrella policy. These can include additional premiums and deductibles.
Commercial umbrella policies do not typically cover property damage caused directly by your business, personal injury claims such as libel or slander, and professional services provided by your business.
Yes, there may be other exclusions depending on the type of operations conducted by your business. It is always important to carefully read over the policy to understand what is and isn’t covered.
