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What is Commercial Umbrella Insurance?

A Commercial Umbrella policy is a form of secondary insurance that supplements a primary policy. The primary Commercial Policies that are supplemented are also known as “underlying policies.” Although primary insurance policies offer a significant amount of protection, they have limits on the maximum amount of coverage they afford.  Commercial Umbrella Policies increase the limits of an underlying policy while also offering coverage across multiple, defined primary policies.

As previously mentioned, the most basic functions of the umbrella policy are to increase coverage limits above underlying policy.  Commercial Umbrella policies do this by:

  • Providing coverage to protect against Personal Injury such as slander or libel losses
  • The Umbrella policy can modify coverage territory
  • Protect against losses that exceed a primary policy limits
  • Covering additional defense costs from a liability suit

Commercial policy can be purchased to supplement General Liability, Garage Liability and Commercial Auto coverage lines, but not for Workers Compensation policies.

Commercial Umbrella Insurance Massachusetts

What Businesses in Massachusetts Need Business Umbrella Insurance?

Every Massachusetts business would benefit from the extra protections a Commercial Umbrella policy provides. For many businesses are exposed to risks that could result in costly claims. A few examples of businesses that might be interested in a business umbrella policy include:

  • Businesses with significant assets as they may be targeted in a lawsuit
  • Companies operating in high-risk industries due to nature of business in which they operate
  • Professionals seeking extra protections against a liability suit

In short, any business that wants more protection than their primary policies offer should strongly consider purchasing a Commercial Umbrella policy.

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Is Business Umbrella and Excess Liability Insurance the Same?

While Commercial Umbrella and Commercial Excess Liability policies are both forms of supplemental liability coverage, they provide different levels of secondary protection.

Commercial Excess Liability, are designed to adopt the terms and conditions of a single underlying policy. Excess policies only increase a primary policy's liability limits.

Commercial Umbrella policies, also offer increased liability limits to a primary policy.  However, they provide a broader range of coverage not covered by the primary policy. Since Umbrella policies often come with their own terms and conditions, they fill voids within the underlying policy, often times acting as a primary policy.

Generally speaking, an Umbrella policy provides a more robust range of coverage rather than simply increased liability limits that of an Excess liability policy.

Commercial Umbrella Insurance Massachusetts

How Can Businesses in Massachusetts Get Commercial Umbrella Insurance?

When purchasing a Commercial Umbrella policy, it’s important to review both the Umbrella policy and all primary policies that are being supplemented. Many Commercial Umbrella policies have underlying coverage requirements that must be met. If a primary policy fails to provide the necessary underlying coverage, the Commercial Umbrella policy’s protections might be void.

In addition to comparing commercial Umbrella policies rates, it’s also necessary that you have in-depth knowledge of the underlying policy being supplemented.  Our agents have the experience and knowledge to help identify which policy protections fit your needs, while securing the most affordable rates to compliment your underlying policy.

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