Posted February 15th, 2013
Commercial general liability insurance and personal liability coverage afford protection for many of the operational risks of businesses, along with an individual’s personal risks. On some occasions, however, an incident that is not covered within the provisions of a liability insurance policy, or that is excluded or omitted by definition from a policy’s terms, can occur. Under these circumstances, companies and individuals may need umbrella insurance. Umbrella coverage can safeguard businesses and people from some liability exposure that are not covered by their underlying insurance. A local independent commercial insurance agent will assist them in securing the proper policy.
When a corporate insured’s underlying policy does not cover a particular kind of damage, harm, or accident, a commercial umbrella policy can provide coverage that goes above-and-beyond. Commercial umbrella liability insurance typically covers claims exceeding the limits of a business’s underlying CGL policy, along with some exposures that are not covered under a standard policy’s terms.
As an independent business insurance agent can explain, typically, a commercial umbrella policy covers personal injury or death, and also affords broad coverage for claims stemming from harms like wrongful eviction, mental injury, humiliation, or invasion of privacy. Also, a policy usually offers coverage for property damage, and for advertising liability, such as for defamation, libel, copyright infringement, or piracy. An independent insurance agent can explain how some commercial umbrella policies exclude professional errors and omission coverage beyond what is covered under a professional liability policy, and how most umbrella insurance policies exclude a business’s obligations under workers’ compensation or disability laws.
A seasoned independent business insurance agent, knowledgeable about the important factors to consider in choosing commercial and individual umbrella insurance, may discuss commercial excess policies with business owners. This kind of insurance is subject to the terms of any underlying policy, but provides coverage for excess limits. Excess insurance is not the same as commercial umbrella coverage, and a licensed independent insurance agent can explain the differences.
Because umbrella policies are broader in what they cover they are also can be harder to find and sometimes will not be available for certain risks. Underwriting restrictions might prevent certain risks from purchasing an umbrella policy.
Unlike commercial umbrella insurance, personal umbrella coverage is generally written as excess over a person’s individual automobile liability insurance. It provides coverage over the coverage provided in an underlying policy. An independent insurance agent can discuss how some policies may afford professional liability insurance, while it is excluded by other policies. Also, she can explain how personal umbrella liability insurance can cover all exposures that are not covered in a person’s underlying policies, subject to certain exclusions, and how it does not cover an insured’s personal liability for any acts that result in property damage or bodily injury to another.
Whether they operate a business, or need coverage on an individual basis, an independent business insurance agent will serve as an invaluable resource in recommending quality umbrella insurance. By connecting with a licensed independent insurance professional, company owners and individuals can get answers to their questions about umbrella coverage, and learn more about the limits and exclusions in their CGL or personal auto insurance policies. With umbrella insurance through a local independent insurance agent, proprietors and individuals, alike, know that if certain damage, or injury is outside the scope of their standard policy, they can sometimes rely on their umbrella insurance to keep them covered.