June 19, 2022

4 Important Questions to Ask When Signing Up for Commercial Umbrella Insurance

If you run a business, you may wonder if it’s crucial that you have commercial umbrella insurance. The simple answer here is that many businesses would greatly benefit from having this type of insurance coverage. The exact perimeters of your insurance policy will differ from other companies. This is why it’s such a good idea to discuss all the specific details with an insurance agent when you start out with this process. They can explain what different languages in these policies mean and help you decide on the particulars.

The following are some top questions to ask your agent before getting commercial umbrella insurance.

What Is Commercial Umbrella Insurance?

If you have no prior experience with setting up commercial insurance, you may wonder what commercial umbrella insurance is. There’s quite a bit to it, and you may get overwhelmed with the amount of information that a professional can give you on this topic. The good thing is that you don’t have to understand all aspects when it comes to what is commercial umbrella insurance. However, it is helpful to know what is relevant to your company and what terms you are likely to see often in your paperwork.

When you add commercial umbrella insurance to general liability, it offers you coverage for legal and medical expenses in the event that someone is injured while they’re on your business premises. This also will go towards the costs to repair or replace damages to your customers inventory and property.

If an employee sustains an injury while in the workplace or during work duties elsewhere, it’s beneficial to have this umbrella policy. This way, you’ll have extra protection if they decide to file a lawsuit. Talk to an expert and consider what level of coverage is best for your situation.


Who Would Benefit from Having Commercial Umbrella Insurance?

Certain companies need umbrella insurance more than others. You should consider two factors to determine how important it is for you to have this type of policy. The specific industry category your business falls under makes a big difference. You also need to consider how much exposure your business has to the public. If you have a greater chance of third-party liability due to the fact that you work directly with people or regularly allow clients onto your property, you definitely need this coverage.

It can be incredibly expensive to have to pay out-of-pocket for medical and legal costs. You don’t want to be caught in a huge ordeal of having one or more lawsuits without the insurance to help you pay these costs.


How Can I Customize My Insurance Policy?

There are many ways in which you can customize any insurance policy. Your policy terms will be tweaked to meet your company’s needs. Of course, there are the general liability industry standards.

An agent will be able to help narrow down the specifics of what you need based on essential information that you provide. This includes your annual payroll and a list of your employees, financial and operational information, the current general liability declaration, and any losses that your business already has incurred. You should then receive a solid umbrella insurance policy to serve you well for the time being and adjust upon any changes to your business.


What Is the Premium for My Policy?

The price you pay for your insurance policy (known as the premium) will vary depending on certain factors. This includes the size of your business, the location where you are based, the type of industry and how much your underlying commercial policy costs. Since umbrella insurance covers risks that are excluded from other policy types, the coverage may be much higher. If you have commercial vehicles, work regularly with the public out of your place of business, and have employees operating heavy machinery, you’ll pay more than otherwise.

Find out exactly what’s covered in your regular commercial policy before you set up your umbrella policy. This is crucial so that you know you’re not doubling up or going to have a gap in your insurance coverage. Speak to a representative of a local insurance agency about any questions and concerns you have to put your mind at ease. The commercial umbrella insurance services in Idaho falls process doesn’t have to be a difficult one when you have the right agency on your side, such as Alpine Castle Lake Insurance.