Protect Your Business Assets with a Commercial Umbrella Policy

Protect Your Business Assets with a Commercial Umbrella PolicyYou understand the importance of having a personal umbrella policy, but do you have an umbrella for your business? A commercial umbrella policy, also referred to as an excess policy, provides an added layer of protection in the event of a major loss.

This is an important coverage for businesses of all sizes to have. You might be thinking, “But, my business already has auto insurance, general liability, and employer liability. Do I really need umbrella insurance?”

Although these three coverages provide protection for liability claims of bodily injury and property damage, or both, keep in mind that these policies have a limit. Once that limit is met, your business will be obligated to pay those excess amounts out-of-pocket, such as legal fees, medical bills, and damage expenses.

How well protected is your business from paying a large liability loss? Consider the following real-life examples taken from LexisNexis:

  • An electrician came into contact with a live wire at a construction site and suffered traumatic brain injury, allegedly the result of the electrical contractor’s negligent work. Settlement: $2,900,000 (Massachusetts)
  • An iron worker fell 65 feet to his death during the construction of a new building due to the negligence on the part of the site contractor and subcontractor. Settlement: $2,300,000 (Massachusetts)
  • A restaurant waitress was killed in an auto accident due to being intoxicated provided by her employer. Plaintiff Verdict: $3,776,691 (Massachusetts)

The right amount of coverage depends on certain factors, including the type of business, the number of employees, and the amount of business assets. Commercial umbrella policies vary widely so it’s important to review your needs with a trusted independent agent.

Additionally, a commercial umbrella can protect you against claims that may not be covered by your underlying policies, provides you with coverage anywhere in the world, and covers defense costs and attorney fees associated with the claims covered by your umbrella policy.

For more information on commercial umbrella policies, contact McGrath Insurance Group at 508-347-6850 or

*This article is written for informational purposes only and should not be construed as providing legal advice.