How commercial umbrella insurance works
- It increases the liability limit that your company already has in existing, or underlying, liability policies. For instance, if your general liability policy offers $1 million coverage per occurrence or $2 million total, you could get a $2 million umbrella policy and increase those limits to $3 million per occurrence and $4 million total.
- It broadens coverage for things that your underlying policies may not cover. For instance, if your auto liability policy covers accidents that might occur in a specific area, an umbrella policy could expand the coverage territory.
Customize your umbrella policy to fit your business
- The financial and operational details of your business
- A copy of the declaration page of your current general liability and business auto insurance policies (if you have them)
- Any prior losses your company has experienced. Keep in mind that a loss doesn’t necessarily mean your premium will be higher
- A list of your company’s officers, their positions and experience, if they’re different from the owners of record
- Annual payroll and a breakdown of employees who are full-time, part-time, subcontractors or consultants
Be sure to mention whether you carry professional liability, errors or omissions liability, liquor liability, employee benefits liability or employment practices liability insurance.