If you are leasing a site on a commercial property, or your business operates on someone else’s property, then a commercial umbrella insurance policy is a good idea. This includes things like home remodeling and painting businesses that need protection against accidental damage to a client’s home.
At the same time, a small business that works in an industry where employees have increased risk exposure for being injured on the job also needs a commercial umbrella insurance policy. This typically helps augment the coverage provided by general liability and worker’s compensation insurance.
Essentially, commercial umbrella liability coverage serves to increase the potential coverage of several policies all at a very reasonable cost. It is certainly much more affordable than paying to increase the individual policy’s liability coverage to the same threshold.
Umbrella liability insurance can also be helpful if you need to increase the limits of your coverage to fulfill a contract requirement. There are many contracts where the underwriters will not sign off on the financing without certain coverage limits in place. In these instances, an umbrella liability insurance policy is a more affordable way to meet these requirements compared to increasing the coverage limits within an existing liability policy.