Commercial Excess/Umbrella

Commercial Excess/Umbrella

Much like a personal umbrella, any business can purchase a commercial excess policy for extra protection.

If you haven’t already visited the personal umbrella section of our website, then once you do you will realize that these policies work in a similar fashion. Not only this, but there are multiple reasons why a business would consider an excess umbrella policy.

For one, contractors sometimes have certain requirements of insurance they must meet in order to perform a particular job. As you become a bigger business, these requirements become stricter and a commercial excess policy will undoubtedly be a requirement at some point. This does not only apply to contractors. All large businesses have umbrella policies and here is the main reason why:

  • An umbrella policy will extent the liability limits of the business and provide additional protection.

If you run a large corporation your minimum limits of general liability coverage would not suffice in the case of a massive lawsuit. Maybe you have a commercial auto policy as well if your employees run errands and one of them gets into an accident. Or a products liability lawsuit.

What commercial excess takes into consideration is of all of the existing coverage the company has. The commercial umbrella will kick into effect once the existing coverage (called the primary coverage) runs out. That is why it is called an umbrella, and that is why one of the biggest insurance companies in America uses a red umbrella as its logo.

If your company did not have an umbrella policy, once the primary coverage ran out it would be up to the owners to pay out of pocket for the rest of the expenses of a potential lawsuit. This could bankrupt an entire business. Fortunately, excess commercial umbrella pricing can be competitive if you find the right market; it would cost a lot less than paying for a lawsuit out of pocket.

To get a quote on a commercial excess product such as an umbrella, contact any of Fairfax Insurance Service’s agents. We’ll help you with your umbrella needs, and identify any gaps in the existing coverage you may have at no obligation.