Commercial Umbrella Insurance

As no two businesses are exactly alike, there is a wide range of pricing in commercial umbrella insurance. This accounts for the fact that there are a variety of risks that each company faces. The amount of insurance required is also a significant factor. Talk with a licensed agent at Paychex Insurance Agency to find the right policy at the right price to fit your business’s needs.

Businesses should consider their overall liability risk when deciding whether to get a commercial umbrella policy. If you think the cost of a claim could exceed your current insurance liability limits, buying business umbrella insurance is a good idea. In addition to the industry you’re in, account for factors such as whether your employees:

• Frequently interact with customers (risk of bodily injury)
• Work on someone else’s property
• Use heavy machinery or potentially dangerous equipment

General business or commercial insurance provides overall coverage for doing business, while commercial umbrella liability insurance comes into play where other insurance policies leave off. Consider umbrella insurance an additional liability coverage that goes beyond the underlying coverage in general liability insurance. Learn more about the basics of business insurance.

At its core structure, an LLC protects a business owner’s personal assets from claims made against the business. For instance, if someone took legal action against your LLC and won, they wouldn’t be able to take assets such as your home or car as part of the settlement. An umbrella policy would protect you and your business beyond any other business insurance policy you maintain. In the event of a claim, umbrella insurance would pay on behalf of the business, up to a certain amount of money (minus your insurance deductible).

Umbrella insurance is worthwhile if you have significant assets you're looking to protect from costly liability claims. The cost of umbrella insurance is also relatively inexpensive for the amount of extra protection it provides the business if it exceeds its primary insurance limits — consider costly lawsuits, car accidents, or other unexpected risks.

Insurance premiums for any type of business insurance can be deducted as a business expense. Note that premiums for personal liability umbrella insurance are not tax-deductible.

An umbrella policy will cover commercial property damage if you’ve reached or exceeded the limits of your property insurance. This would include:

• Buildings
• Equipment
• Furnishings
• Fixtures
• Inventory
• Computers
• Valuable papers
• Records
• Personal property of others in your care, custody, or control

Umbrella insurance is additional coverage you add to policies you already have, such as a general liability policy. It’s not a separate policy. That means you can’t get commercial umbrella insurance if you don’t have general liability insurance. Consider the cost advantages of bundling other forms of business insurance with an umbrella policy under the same carrier.