You are currently viewing What is Umbrella Insurance?
  • Post last modified:June 21, 2021
  • Post category:Umbrella Insurance

If you’re a commercial client of ours here at Paradiso Insurance, then one of our professional, licensed insurance agents has probably spoken to you about umbrella insurance already. Although, if you’re still asking yourself, “What is umbrella insurance?” then we wanted to make sure you had the opportunity to understand how an umbrella insurance policy can provide you the protection you need to make sure your business never goes under. While your standard commercial insurance policy provides you with protection for most situations you encounter, something bigger could happen, where you’ll need excess coverage that goes beyond the limits of the average commercial insurance policy. That’s where umbrella insurance comes into play.

What is Umbrella Insurance?

Umbrella Insurance, also known as an excess liability policy, extends the limits of a single underlying general liability, auto liability, employers’ liability or liquor liability policy. It doesn’t offer any broader protections, but it will provide extra protection. Essentially, if something catastrophic were to happen to your business, something really big, your standard commercial insurance policy may not provide you with all the coverage you need. In that case, you’d need hire limits on your policy to help you stay protected. Let’s face it, no business is immune to catastrophic events, and we’d hate to see any of our clients suffer a total loss or have to close their doors. This is why we heavily advise having umbrella insurance coverage in place.

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What is Protected by my Umbrella Insurance Coverage?

At this point, you may not be asking yourself “What is umbrella insurance?” but instead, “What is covered by my umbrella insurance policy?”

Umbrella insurance, as we mentioned above, essentially provides the same types of coverage that your other policies cover. The reason they are so important is because if the limits of your existing insurance policy get exhausted, then your umbrella insurance coverage will kick in and still protect you. For example, if you have a $1 million umbrella policy, you will be protected up to that amount if your commercial liability limits were exhausted from a claim.

Our Insurance Agents are here to Help

With umbrella insurance coverage or an excess liability policy, you won’t have to worry about the future of your business. Our insurance agents understand the local economic and legal environments, and we can use that knowledge to craft the right policy for your business on an individual basis. Not only that, but we promise to put ourselves in your shoes to understand the unique risks your that your business faces within your unique industry to ensure we have a policy tailored to your specific needs.

If you have any questions about umbrella insurance coverage, or you’d like to open up a policy today, our agents are here to help. You can reach out to any of our professional, licensed insurance agents by giving us a call at 860-684-5270.  Remember, your assets are on the line, and so is your business’ reputation. Get the coverage you need today!