Umbrella Coverage and Orlando Fl Commercial Insurance

Umbrella Coverage and Orlando Fl Commercial Insurance

An Orlando FL commercial insurance policy can be designed specifically for your business. There are four main categories of coverage that most companies should not be without, which include property insurance, general liability insurance, commercial automobile insurance, and umbrella insurance.

Umbrella insurance works as an additional liability-type insurance coverage for instances where a claim exceeds your general liability insurance limits. When you start to shop for commercial insurance for your business, you should purchase enough umbrella liability insurance to increase the amount of protection for you and your business when extremely costly accidents happen. Umbrella policies provide an extra layer of business liability insurance that fills in both coverage and limit gaps in all underlying liability policies.

While standard business liability coverage will take care of you and your employees in most situations, when a serious situation does arise, and unfortunately this can occur to any type of business entity at anytime, umbrella liability insurance will help ensure that your business is properly protected. An umbrella policy is an inexpensive way to provide extra coverage against bodily injury and/or property damage.

Situations where umbrella insurance makes a difference

There are many situations where having an umbrella policy as part of your Orlando FL commercial insurance package can save the day. For example, let’s say that your current policy covers you for $1 million dollars. If a claim occurs, and you are successfully sued for $1.5 million, your business umbrella coverage can then pay the outstanding $500,000 in settlement fees – otherwise you would be liable for the balance owed, and it can be quite painful having it come out of your business profits.

How much commercial umbrella insurance coverage does your business need? A variety of factors go into determining the answer to this question, including the type of business you own and how much coverage you already have. If you have a $1-million general liability policy and a $500,000 commercial auto liability policy, your umbrella policy will fill in the $500,000 gap in the auto insurance limit.

Business umbrella insurance has its own policy language and generally will supersede the exclusions and conditions of the primary liability policies. Umbrellas are generally easier to coordinate with underlying liability policies and are also a highly effective risk management tool.