Mississippi businesses of all sizes are vulnerable to liability lawsuits. If a judgement against your business is very large and exceeds what your commercial liability insurance can cover, the overages can send your company into bankruptcy. Business umbrella insurance can prevent that from happening.
Local independent insurance agents can help you find a suitable, yet competitively priced, umbrella insurance policy for your business. There are more than 200 independent agents with offices in the Magnolia State so it should be easy to find an insurance agent near you.
What Is Umbrella Insurance for Mississippi Businesses?
Business umbrella insurance (which some insurance providers refer to as “commercial umbrella insurance” or “excess liability insurance”) is a business insurance product that is designed to significantly boost the liability coverage provided by many of the insurance products your company currently holds.
Purchasing one of these policies is a great way to obtain very high levels of liability coverage without spending a lot of money.
How Does Business Umbrella Insurance Work?
Business umbrella insurance is secondary coverage that is designed to work with many of the commercial liability policies your company already has. These policies are considered your primary coverage.
Your primary liability insurance provides the first line of defense if your business is sued for a covered event.
If the costs associated with the liability lawsuit are higher than what your primary policy can pay for, your umbrella insurance will kick in to cover the remainder of the claim, up to its own coverage limits.
How Much Does Business Umbrella Insurance Cost in Mississippi?
Business umbrella insurance does not go into effect unless your primary coverage is exhausted, so these policies are generally very affordable. This means that your company can boost its liability coverage by millions of dollars without needing to spend a lot of money.
Prices for commercial umbrella insurance can vary from one business to the next because rates are based on many factors such as the following.
- The type of business you are insuring and its potential liability risks
- The size of your business and its expected annual revenue
- Whether your business is open to the public and, if so, how much foot traffic it gets
- The likelihood that your company will be hit by a large liability lawsuit
- The amount of extra liability coverage you wish to purchase
On average, every $1 million worth of extra liability coverage costs Mississippi businesses around $100 a month. That’s a small price to pay to shield your business from the devastating losses that a large liability lawsuit can cause.
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What Does Commercial Umbrella Insurance Cover?
Business umbrella insurance is designed to boost the liability coverage provided by some of the commercial liability policies your business carries. Here are the main liability policies that business umbrella insurance provides extra coverage.
- Commercial general liability insurance: This includes the following policies.
- Commercial vehicle liability insurance
In addition to covering any extra liability costs your business may encounter, umbrella insurance policy can also provide coverage for the following.
- Coverage of legal fees: This is important because when court cases drag out for a long time, legal fees can really add up.
- Drop-down coverage: If your umbrella insurance offers an optional drop-down clause, it can provide coverage for certain events that are not covered by any of your business’s primary liability policies.
What Does Commercial Umbrella Insurance Not Cover?
As with any insurance product, business umbrella insurance policies have limitations on what they will cover. While specific exclusions can vary a bit from one insurer to the next, you can expect that your business umbrella insurance will not provide extra liability coverage for the following policies.
- Cyber liability insurance
- Errors and omissions insurance
- Malpractice insurance
- Employment practices liability insurance (EPLI)
- Aircraft and watercraft liability insurance
Fortunately, each of these liability products typically offers very high coverage limits that should be sufficient to appropriately cover your Mississippi business.
Additionally, most umbrella insurance policies will not cover the following issues.
- Lawsuits related to criminal acts: If the liability lawsuit your company is facing is due to criminal acts committed by you or your employees, you should not expect your umbrella insurance to provide coverage.
- Losses caused by product recalls: Although your umbrella insurance can supplement your product liability coverage, any losses your business sustains due to related product recalls is not included in this coverage.
When comparing policies and rates for business umbrella insurance products, it is a good idea to review each policy’s specified exclusions before making a selection.
How to Easily Compare Commercial Umbrella Insurance Quotes in Mississippi
If you are looking for the best umbrella insurance policy your Mississippi business, local independent agents are ready to help. These agent work for you, not for a specific insurance provider, so they can shop around to find you a suitable coverage at a competitive price.
To get more information and to start comparing business umbrella insurance quotes, you can arrange an obligation-free consultation with an independent insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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