Not to be viewed solely as a layer of protection against major civil court judgments, commercial umbrella insurance can also cover gaps that may be left by a business’ other insurance policies. For example, a company that owns many buildings that are subject to different types of risk may choose a commercial umbrella policy instead of having several different policies to cover each building. When a company decides to purchase a commercial umbrella policy, the agent will inspect each building the business owns. The agent will also inquire about the contents of each building as non-real estate property that is located on the premises may also be covered. As a result, the business would not be required to purchase a separate policy to protect equipment and other items that are located onsite.
Companies may also include other risks in a commercial umbrella policy. The policy holder may be compensated in instances involving theft, whether the theft was committed by an employee or a third party. Businesses that are located in areas that experience many tornadoes, earthquakes, or hurricanes may also wish to include coverage for damage may be caused by natural disasters. Companies that allow employees to drive their personal vehicle in the course of their employment should also consider non-owned auto coverage.
As a business grows, potential exposure to liability increases. Having multiple policies can be confusing, and doing so may also create room for conflict if there is a loss that occurs in an area that may be covered by two or more overlapping policies. Therefore, growing businesses should consider commercial umbrella coverage as a precautionary means that extends beyond the general idea of having a policy that protects against losses that may result from a major lawsuit. Choosing an umbrella policy may also help commercial clients ensure that all their potential risks are covered.