South Dakota Business Umbrella Insurance

Your Guide to South Dakota Business Umbrella Insurance

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South Dakota Business Umbrella Insurance

In South Dakota, $2,227,477,000 in commercial claims were paid in 2019 alone. If your operation has a loss, you could be at a huge financial risk. Business umbrella insurance can help.

An independent insurance agent has access to multiple markets so that you have options. Since they do the shopping, you'll save time and premium dollars. Connect with a local expert for custom quotes today.

What Does Commercial Umbrella Insurance Cover?

In South Dakota, commercial umbrella insurance will help pay for a significant claim. When you have a loss that exceeds your limits, you could be on the hook. Take a look at some things commercial umbrella insurance can provide coverage for.

  • A lawsuit arising out of slander
  • A lawsuit arising out of libel
  • A lawsuit arising out of defamation of character
  • A lawsuit arising out of bodily injury

Coverage applies when your underlying policy limits have been exhausted. Umbrella insurance will kick in when you need it the most. Coverage starts at $1,000,000 in protection and goes up from there.

Commercial Umbrella Insurance Quotes and Average Cost

Every commercial insurance policy will have a unique premium. Carriers look at numerous risk factors when determining your pricing. Check out the following items companies use to set your business umbrella costs.

  • Your insurance score
  • Your claims history
  • Your address
  • Your assets
  • Your gross business income
  • Local weather patterns
  • The industry you are in
  • Your experience level

The average cost of commercial umbrella insurance

  • Commercial umbrella insurance average: $1,000 annually with a $1,000,000 limit of protection

Some businesses are on the high end of that average, coming in at $2,000 and up. Others are only around $200 for annual premium. It comes down to how risky your operation is and the coverage you select. Exact pricing can be obtained from a trained professional. 

Commercial General Liability Insurance vs. Umbrella Policy

South Dakota has 86,550 small businesses. All of them need general liability insurance and should have commercial umbrella coverage as well. These are separate policies and are necessary for proper protection.

Here's how they work together.

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, and libel or slander.
  • Commercial umbrella insurance: Pays for a lawsuit arising out of bodily injury, property damage, and libel or slander. This is a continuation of liability coverage when a larger claim occurs.

Commercial Umbrella Insurance for Rental Properties

Your South Dakota rental property will need a variety of coverages. First, landlord insurance is necessary. Once you have an underlying policy, you can consider obtaining business umbrella insurance. 

Landlord insurance will need to carry specific limits of protection to qualify for umbrella coverage. Most carriers will require that they insure the underlying policy as well. This protects everyone and allows claims to be handled smoothly.

Stand-Alone Commercial Umbrella Insurance

With the number of losses in South Dakota and other states, the right commercial protection is needed. The threat of a substantial liability claim is high if you're a business owner. A commercial umbrella insurance policy can help mitigate any future risk.

Business umbrella policies don't come as stand-alone coverage. The majority of carriers require that they provide the underlying policies in addition to the commercial umbrella coverage. This streamlines losses and allows the coverages to work together. 

How to Connect with an Independent Agent in South Dakota

When you own a business in South Dakota, you'll have a lot of responsibility. Protection is one of them, and it can be challenging if you're not a licensed professional. Commercial umbrella insurance can help save your company from a substantial financial loss. 

Fortunately, an independent insurance agent will have access to several carriers so that you can save. They can work on your behalf at no cost to you, making it a no-brainer. Connect with a local expert on TrustedChoice.com to get started. 

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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