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Let's Talk Commercial Umbrella/Excess Coverage

Umbrella coverage... what is it? What does it cover? And why do you need it? Great questions and ones we hear all the time. These are important questions to ask because you DO need an Umbrella Policy. An umbrella policy provides additional liability coverage

A commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability limits. In other words, commercial umbrella insurance kicks in when the limits of your liability has been reached on your other policies. Let's use an example to explain that. Keeping in mind that it is just an example of what "could happen" and what might be covered by your commercial umbrella or excess policy. We always advise you check with your agent if you have questions in regard to your policies.

Example: Joe Bob and Shirley have booked a weekend stay at your campground. They are return guests and you know them fairly well. You know that they love the walking trails you have around your property. So it was no surprise when you greeted them in the morning as they were headed out for their walk. It was hours later when a 911 call was placed. Joe Bob had slipped on a lose rock on the path, fell and hit his head. He was not responsive on the scene.

Long story short, Joe Bob sustained a severe brain injury in that fall, along with a broken arm and fractured elbow. His brain injury will effect him for the rest of his life and his elbow will never be the same. Needless to say, they are suing you in a liability claim. They have sued you for $2 million dollars for injuries sustained, doctor bills, lost wages and pain and suffering. I'm not going to go into what that might all entail. For the purpose of the example and this blog only, let's say they win. In this case, your general liability would pay out to it's limits. Hopefully your general liability policy is for at least $1million and would pay out up to that amount. But what about the remaining $1 million?

Guess what - if there is no other policy such as a commercial umbrella policy that remaining balance can be paid from, it's now become an out of pocket expense for you. However, if you have a $2million umbrella policy in force, then your umbrella would pay out another million. Your loss is covered and you will not be forced to close your doors.

Usually, a commercial umbrella policy is very inexpensive for the additional amount of coverage you gain. It's a very important part of your insurance portfolio. Not only on a commercial side, but on a personal side as well. Umbrella policies are a must have in today's world. If you do not have one in force, give us a call. Let's discuss what your needs are and make sure you are Protecting What's Important, Protect the Beautiful.

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