Are you trying to decide if adding commercial umbrella insurance to your current policy is right for your company? It’s definitely a good thing for many businesses, but may not be the right fit for everyone.
Does your business often have customers on the premises? Do your employees do a lot of driving for your company? Is heavy equipment involved during your regular day’s work? Is your business open to the public? These are all risks that would be well served by having umbrella insurance to cover above and beyond certain liability coverages.
Vern dealt with lots of deliveries every week at his small-town hardware store. He had a forklift for unloading the semi-trailers that made frequent stops behind his store. There were also many customers that walked in and out of the store all day long. Vern’s insurance agent recommended adding commercial umbrella insurance to his current policy, just to be safe. That proved to be sound advice. Less than a month after adding the umbrella insurance, one of Vern’s customers tripped over a ladder being used for stocking shelves and fell into a display of garden tools. The customer received a deep cut in her hand, requiring several surgeries and causing permanent nerve damage. To make matters even worse, the woman was an airline mechanic, and the nerve damage caused her to lose a good job. It wasn’t long before Vern faced a very big lawsuit that would never have been covered by his previous insurance policy. Thankfully his commercial umbrella coverage picked up where his general liability insurance left off.
You can see how quickly a lawsuit can extend beyond general liability coverage. Keep in mind, though, that commercial umbrella insurance only supplements certain policies. It will not help in cases involving professional liability, for example.