What is Commercial Umbrella Insurance?
Commercial Umbrella Insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
When an insured is liable to someone, the insured’s primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).
Commercial Umbrella Insurance is similar in that it pays after an underlying primary policy is exhausted, but is different in that it normally applies to only one underlying primary policy and covers only those losses that are covered (up to policy limits) by that primary policy. For example, if the primary policy does not cover liability due to pollution, the excess policy does not either. But an umbrella policy may cover pollution liability from the first dollar in addition to liability of other kinds that is simply beyond the primary policy’s limit.
If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.
What is Excess Liability Coverage?
This coverage provides extra liability limits over an Umbrella policy. This coverage typically follows the terms of the first underlying insurance policy.
Who needs Excess Liability Coverage?
Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, worldwide presence, significant public exposure.
Talk to Penny Hanley & Howley Co. Inc. today about your Connecticut Small Business needs and we can advise you what kind of liability coverage you need to protect yourself and your company. Working with Connecticut Small Businesses is our specialty. Call us for more information at 860-694-2721.
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