Massachusetts Commercial Umbrella Insurance
If you run a business in Massachusetts, you will be happy to know that the state offers some of the best solutions to ensure easier and safer operations for commercial business setups. One of the things that make the state of Massachusetts business-friendly is the access to a rather substantial amount of insurance coverage, which is made possible through the primary insurance policies.
Does your business need extra coverage in addition to your commercial insurance coverage? Well, in that case,commercial umbrella insurance sounds like the perfect plan for your business. This coverage extends the limit of your existing commercial liability to fulfill your business needs.
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What is Massachusetts Commercial Umbrella Insurance?
You could think of the Massachusetts commercial umbrella insurance as supplemental commercial liability insurance. The policies offered under this coverage would serve as a secondary insurance policy that’s used after the exhaustion of primary applicable insurance policy, i.e., your commercial insurance coverage.
Note that the other types of primary policies include the business insurance policy and the general liability policy. Essentially, the primary insurance policies under which the commercial umbrella is supplemented are also known as the underlying policies.
The commercial umbrella insurance policy is also regarded as a type of liability insurance that protects a business from different incidents, whether a business is accused of wrongdoing or if it’s found responsible for injury or damage sustained by another party (third party).
This commercial umbrella insurance policy could also be used where an individual, an organization, or a business suffers a loss because of the inactions of a business. In such cases, this secondary insurance policy will cover the legal costs accrued, along with any other settlements that are associated with that incident.
But as mentioned above, this is a secondary insurance policy, which means that it will only be used to pay the business’ liabilities after all underlying insurance coverages (primary insurance policies) have been exhausted.
How Does Commercial Umbrella Insurance Work?
From the definition of commercial umbrella insurance, it’s clear that this type of insurance comes in handy when a business needs an additional layer of protection or extra coverage to pay for liabilities.
The commercial umbrella works by giving a business a potential layer of liability protection/coverage that goes above its existing insurance policy. As the name suggests, the umbrella coverage shields a business from expected liabilities by making sure that even with a primary insurance policy, the business has an additional kitty to cover liabilities and other expenses that would otherwise burden it.
Thanks to the Massachusetts Commercial Umbrella insurance policy for making it easier to protect a business from the situations and circumstances where accidents would result in losses that exceed the limits of the primary policy.
So, if a customer breaks their hip when they fall within the premises of a business, this insurance policy will protect the company from running losses from the expensive legal battles.
Why do I need Massachusetts Commercial Umbrella Insurance?
While there is a natural sense of fear around the purchase of the commercial umbrella insurance policy, most legal professionals and insurers advise businesses to take this insurance policy primarily because anyone can choose to sue a business for pretty much anything, leading to a financial ruin.
With stories of juries awarding multi-million and billion-dollar judgments to victims, buying the commercial umbrella insurance policy from LoPriore might be the best financial decision taken for safeguarding any business.
What Does Massachusetts Commercial Umbrella Insurance Cover?
This umbrella insurance policy comes with coverages that aren’t afforded by the basic liability insurance policy. The coverage offered depends on the business type, but it often covers damages from lawsuits, attorney fees, medical expenses, judgments, and settlements, among other business liability insurance costs. More specifically, the policy will cover bodily injuries to employees or customers or damage to someone else’s property by a business.
Who Should Purchase Commercial Umbrella Insurance?
If a business involves significant interactions between the customers and clients, it means that there is a potentially high liability risk. These risks could be even higher if employees run the business’ operations using dangerous equipment or heavy machinery.
Therefore if the cost of a business’ liability claims could easily exceed the existing liability limits, then it would be a good idea to buy the commercial umbrella insurance.
A business owner should also consider buying the commercial umbrella insurance if his business’ operations put employees and other individuals at a high risk of bodily injuries. This is important because if someone gets injured in office premises and the owner has to cover the costly lawsuits and medical expenses, they can easily exceed the business’ primary coverage limits, which is why this additional insurance coverage is important.
The other businesses that require the commercial umbrella insurance cover include:
- Companies in the industries that are known for their high number of lawsuits
- Professionals whose legal defense fees can be exhaustive of the company’s professional liability insurance coverage.
- Nonprofit organizations
- Municipal governments
- Businesses and companies with significant assets.
How Can Businesses in Massachusetts Obtain a Commercial Umbrella Policy?
If a business falls under any of the categories above or meets the stated conditions, they’ll need the Massachusetts Commercial Umbrella Insurance policy.
To obtain this insurance policy, the business owner needs to first review their primary policies along with the supplemental Umbrella policies. They have to confirm that they can meet the terms/requirements that the umbrella commercial insurance policies come with.
Reviewing the terms of the primary policy is important because if it turns out that the primary policy fails to meet the specific terms for the underlying coverage, the supplemental umbrella policy and its protections may become void. So, don’t overlook any specifications on the primary policies.
After the review process, compare the rates of different commercial umbrella insurance policies. Gain in-depth knowledge about the features of the underlying policy and make sure that the rates and products that are settled for can offer the best protection.
Comparing commercial umbrella insurance quotes from different insurance companies that offer commercial umbrella insurance policies is another important thing to take note of.
How much does Commercial Umbrella Insurance in Massachusetts cost?
The cost of the commercial umbrella policy to be purchased varies depending on the business type and size, as well as the value of the underlying insurance coverage. The commercial umbrella insurance cost also varies depending on the insurance company the coverage is bought from. It is, therefore, important to shop around, comparing rates and policies.
Look for an insurance company that offers the general liability policy, and after receiving the quote,it could be used as the basis of comparison/research.
Typically, the limits for the insurance coverage starts from about $1 million, which is the preferable limit for most consumers. But if net worth is greater than $1Million for any business, it might need a policy with a higher limit of about $5million.
To make the best decision, based on finances, business owners should talk to their insurance agent for the best professional advice. This is an important consideration because it is easy to underestimate liability claims, hence the best commercial umbrella insurance coverage.
Working with an agent will help a business owner choose the best insurance plan that suits them based on their current financial status, potential financial status, and the expected risk factor.
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Commercial Umbrella Insurance FAQs
When there is a liability suit against you, the commercial umbrella extends those limits to cover the additional costs. Indeed, the umbrella policy provides coverage up to your limits. This means your total commercial liability coverage is the sum of both limits.
Your personal umbrella policy will not cover liabilities related to your commercial activities. If you own a business, you would still benefit greatly from a commercial umbrella policy.
When things are running smoothly, paying a premium for commercial umbrella insurance might feel like spending money on something you aren’t using. However, the costs of medical payments and legal fees associated with an unexpected liability lawsuit can be significant enough to result in serious loss or even bankrupt your business. Having substantial coverage prepares you for unexpected events and even keep you in business if disaster strikes.
If your vehicle is covered by commercial auto insurance, your commercial umbrella policy can extend that liability coverage. However, if you’re driving your personal vehicle, your commercial umbrella policy will not provide coverage. Personal umbrella insurance is also available to extend your personal liability limits.
Commercial umbrella coverage limits range from $1 million to beyond $100 million. The amount required by each business may vary widely. Our independent agents can help you decide how much coverage you need by determining related factors including:
• Risks you may face
• Value of your assets
• The potential loss of future income
Why Choose Us
Finding the right insurer to provide the ideal add-on solution for a business insurance coverage can be confusing and even frustrating.
That shouldn’t be the case when a businessperson knows exactly where to start – which is where we come in. We are experienced insurance professionals with a keen interest in commercial umbrella insurance.
Working with us will give any businessperson the confidence to run an otherwise high-risk business/company seamlessly. We’ll help you choose the best commercial umbrella coverage based on the budget, risk, and needs of a business.
Have any Question? Ask us anything, we’d love to answer!