Business Umbrella Insurance

Finding the Best Business Umbrella Insurance

(Because accidents happen and some people are crazy)

Greg Lewerer | May 17, 2018

So you’re finally a business owner, which means you’re living the dream of being your own boss. This also means that you’re on the hook if something were to go wrong, like being sued by anyone for anything. 

Example: Remember the lady that sued Wendy’s because she claimed there was a finger in her chili? Yeah, she was lying, but that incident still cost Wendy’s a lot of time, money, and chili sales.

Your business is no joking matter, which makes finding a legit business umbrella insurance policy super-important. Our expert independent agents are ready to walk you through a handpicked selection of sweet options, so you can make smart choices.

What Is Business Umbrella Insurance?

Basically, business umbrella insurance is an extension of your normal business insurance. This can significantly increase your limits and expand your protection to provide more coverage in a number of worst-case scenarios.

How Is Business Umbrella Insurance Different from Regular Business Insurance?

Businesses are required to have general liability insurance. These policies cover most of the standard claims, like if your delivery truck accidentally crushes a Mini Cooper. 

Business umbrella insurance provides additional coverage to all the underlying policies (hence the name umbrella) that you hold for extra protection. The excess insurance can be anywhere from one million to several million dollars. 

Is Business Umbrella Insurance Really Necessary?

For some companies, business umbrella insurance is actually mandatory. For example, the federal government requires businesses such as oil companies to have umbrella policies. For the general business owner, business umbrella insurance is not required but totally worth having.

Why Do I Need Business Umbrella Insurance?

Now is not the time to think “that could never happen to me,” because getting sued can happen to any business at any time. The most expensive part of getting sued is paying the lawyers to defend you. No matter how ridiculous a lawsuit is, your business has to respond. 

Lawsuits can be drawn out over several years. Even if you don’t end up paying out to the plaintiff, you could rack up several hundred thousand dollars in legal expenses. If you don't want to go bankrupt, you need business umbrella insurance. 

What Does Business Umbrella Insurance Cover?

A business umbrella policy will cover whatever the standard underlying policies cover, but won’t kick in until those coverage limits are met. It’s like when a situation gets much riskier and a SWAT team shows up and says, “Okay, we’ll take it from here.”

For example: If you have delivery trucks, then you will have a vehicle auto policy that most likely has a limit of a million dollars. Your umbrella policy would provide an additional million dollars above your auto policy that would kick in once the auto policy is exhausted. 

How Much Does Business Umbrella Insurance Cost?

The cost of business umbrella insurance depends on the type of business and a variety of other factors like size, materials used, and how you run your operations. So for an old-timey barbershop that wants a million-dollar umbrella policy, that might only be $500. However, a nationwide chain of grocery stores that wants to purchase a $5 million or $10 million umbrella policy may have to pay tens of thousands of dollars. 

Why Would I Love Working with an Independent Agent?

Independent agents write around 80% of commercial insurance, so they know what they’re doing. Agents have the ability to shop and compare policies from multiple carriers to find the best fit for your particular business and situation at the best possible price. 

What’s the Best Way to Compare Business Insurance Quotes?

Our gifted agents will review your needs and help you evaluate the business umbrella insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. So you’ll have that going for you.

Now, who's ready to get their insurance problems solved?