Would my small business benefit from a commercial umbrella?

An umbrella is a valuable policy that provides you with additional protection at a relatively minimal cost. Many businesses in the Hudson Valley area will purchase what they feel are the fundamental insurance policies needed to protect themselves. These typically include: general liability, worker’s compensation, and a commercial auto policy.

­­­A commercial umbrella is often considered to be secondary or ‘excess’ coverage. This basically means that in addition to your general liability coverage (your ‘primary’ insurance policy) an umbrella will pay out on covered claims that are in excess of your liability’s policy limits. The umbrella policy will kick-in once your primary policy limits have been exhausted.

What can an umbrella policy do for my New York business?

For one additional premium your business adds on another layer of protection to a multitude of your commercial policies: general liability, hired and non-owned auto liability, and employer’s liability. For example, let’s say your general liability policy maximum is $1 million, but a claim was settled in the amount of $1.8 million dollars against you. The general liability policy will cover you for $1 million only; therefore, unless you have a commercial umbrella policy, you will be financially responsible for the remaining $800,000. With the amount of lawsuits on the rise, can your business afford not to have the extra coverage ‘just in case.’ The most affordable way to obtain higher limits on several of your policies is to purchase a commercial umbrella.

As a small-business owner, an easier and more affordable way to add substantial protection of your assets is to invest in an umbrella. In the event your business is forced to come face to face with a legal settlement that ends up being in excess of your policy limits an umbrella will be there. Think of what an actual umbrella does for you. Your body is easily susceptible to sickness if you stand out in the rain, so an umbrella is used as a cover for your body from the effects of a cold rain. Similar to the actual umbrella, a commercial umbrella hovers over your business, protecting your assets and bank accounts from being seized if you don’t have enough liability coverage.

The major benefit of purchasing an umbrella versus opting for higher limits on your policy is simple – cost effectiveness. An umbrella affords you with expanded coverage limits on several policies through one policy.

What do we mean by this? Rather than raising your limits on each individual policy, your umbrella will increase your coverage on all of your policies. You will basically spend less money on premium every month while still having a gratifying sense of ease knowing you have greater protection.

Like many businesses you hope to expand your list of clients, partners, suppliers, and other associates; however the more people that come into contact with your business, the higher the likelihood of being involved in an incident resulting in a lawsuit. A commercial umbrella offers your business the extra safety net you have been searching for.

Here at Joy Insurance we hold ourselves to the highest standards in the insurance industry. We strive to fully protect your business after discussing all of the options and features with you, while offering you the best quality for the best price. If you would like further information regarding commercial insurance umbrellas or are interested in a no-obligation quote, contact one of our friendly and knowledgeable commercial insurance experts today!