The commercial umbrella policy is designed to cover your business for losses that either exceed the limits of or are otherwise not covered by your underlying liability insurance policies. It can provide an additional layer of insurance protections to handle major losses.
Can your business afford a settlement that exceeds your insurance limits? In this situation, the umbrella policy takes over where the underlying liability policies stopped, providing defense coverage and additional limits to pay large judgments.
When the insurance coverage provided by your underlying liability policies is not enough to meet the amount of a loss, the business is responsible for the difference. An umbrella liability policy could be the difference between bankruptcy and an on-going business venture. This is an excellent method to help shield your business from catastrophic claims.