Liability lawsuits are among the most expensive hazards companies face. It is not uncommon for a judgment against a business to exceed $1 million. If your company does not carry enough liability insurance to cover the costs of a lawsuit, it could be forced into bankruptcy. That is why many business owners in Maryland invest in business umbrella insurance.
Independent insurance agents can help you find the umbrella coverage your business needs at a price it can afford. With more than 200 independent agents with offices in Maryland, it should be easy to find an insurance agent near you.
What Is Umbrella Insurance for Maryland Businesses?
Commercial umbrella insurance (also called business umbrella insurance or excess liability insurance) is a policy that is designed to significantly boost the coverage offered by some of the commercial liability products your business may carry.
This insurance provides a highly affordable way to get millions of dollars worth of liability coverage added to your business insurance portfolio.
How Does Business Umbrella Insurance Work?
Business umbrella insurance is designed to work with your other commercial liability policies, which would serve as your primary coverage.
Your primary liability insurance will provide the first line of defense if your business is sued for a covered event. If the cost of the liability lawsuit exceeds what your primary policy can pay for, your umbrella insurance will take over to cover the remainder of the claim, up to its own coverage limits.
How Much Does Business Umbrella Insurance Cost in Maryland?
Umbrella insurance does not go into effect unless your primary coverage is exhausted, so these policies are typically very affordable. Prices for commercial umbrella insurance vary from one business to the next because premium rates are calculated based on factors such as the following.
- The type of business you are insuring
- The size of your business and the amount of foot traffic it gets
- The likelihood that your company will be hit by a large liability lawsuit
- The amount of extra liability coverage you want to purchase
On average, businesses in Maryland spend about $1,200 a year for every $1 million in commercial umbrella insurance coverage they carry. Let a local independent agent gather some customized quotes on your behalf so you can find out how much a policy will cost for your particular business.
What Does Commercial Umbrella Insurance Cover?
Commercial umbrella insurance is designed to provide your business with extra coverage for some of the liability policies that it is likely to carry. The two most common liability policies that business umbrella insurance provide coverage for are the following.
- Commercial general liability (CGL) insurance, which includes the following.
- Commercial vehicle liability insurance
These are not necessarily the only liability policies that your commercial umbrella insurance can supplement. Talk to a local independent agent to learn whether any of the other liability products your company carries are eligible for umbrella insurance protection.
In addition to covering any extra liability costs incurred through settlements and judgments, your umbrella insurance policy may also cover the following.
- Excess legal fees: Some business umbrella insurance policies offer coverage of legal fees as an additional benefit that does not count toward your coverage cap.
- Drop-down coverage: Some umbrella insurance policies allow you to purchase an optional drop-down clause. This clause can provide drop-down coverage for certain events that are not covered by your business’s primary liability coverage. That way, you are fully covered.
Learn more about what a business umbrella insurance policy can do for you by talking to an independent insurance agent.
What Does Commercial Umbrella Insurance Not Cover?
As with any kind of insurance policy, business umbrella insurance has limitations on what it will cover. Although exclusions may vary slightly from one insurance provider to the next, you can expect that your business umbrella insurance will not provide extra liability coverage for the following.
- Professional liability insurance
- Medical malpractice insurance
- Employment practices liability insurance (EPLI)
- Cyber liability insurance
- Aircraft liability insurance
Additionally, most umbrella insurance policies will not provide coverage for the following.
- Claims involving criminal acts committed by your company or its employees
- Costs related to product recalls
A local independent insurance agent can help you review what your business umbrella insurance will and will not cover before you decide whether a policy is a good investment for your business.
How to Easily Compare Commercial Umbrella Insurance Quotes in Maryland
Independent insurance agents are available to help you find the best and most affordable umbrella insurance for your Maryland business. These agents can help you determine how much extra liability coverage your business needs and can obtain customized quotes from some of the area’s leading insurance providers.
If you would like more information and want to start comparing business umbrella insurance quotes, you can arrange a one-on-one consultation with an independent insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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