Umbrella Insurance for Your Business and Peace of Mind

Umbrella Insurance for Your Business and Peace of Mind

January 25, 2021
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Umbrella Insurance for Your Business and Peace of Mind

 

The purpose of Umbrella coverage is to protect a business or organization against monumental liability claims that could result in irreversible damage to your business. 

 

What can umbrella insurance do for you? 

  • Provides coverage for potential damages and court defense fees that exceed underlying insurance policies (typically CGL policies).
  • Provides coverage in situations that are not covered by underlying insurance policies but are not excluded from the umbrella policy. This benefit is subject to a self-insured retention (SIR), similar to a deductible, in which the policy holder is responsible for losses up to the SIR amount. 
  • Applies to claims where the aggregate limit of the underlying policy has been met. The umbrella policy will cover the portion of the claim that cannot be paid with the underlying policy because there are not enough funds available in the policy to cover the entire claim. For instance, if at the time of a claim your CGL policy has $500,000 remaining and the claim in question is $1.5 million, then the CGL policy will cover $500,000 and then the umbrella policy will cover the remaining $1 million.

 

To learn more about averting your business risks with commercial umbrella insurance, contact First Insurance Group Inc at (812)331-3230

 

 

Provided by First Insurance Group Inc

This Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2007-2010 Zywave, Inc. All rights reserved