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 makes it so business-friendly here is the access to a rather substantial amount of insurance coverage, made possible through the primary insurance policies.
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 makes it so business-friendly here is the access to a rather substantial amount of insurance coverage, made possible through the primary insurance policies.
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What is Commercial Umbrella Insurance?
You could think of commercial umbrella insurance as supplemental commercial liability insurance. This coverage serves as secondary insurance used after the exhaustion of primary applicable insurance policy, i.e., your commercial insurance coverage.
Note that 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.
This 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 to pay for liabilities.
It protects a business from the situations and circumstances where events result in losses that exceed the limits of the primary policies.
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 Commercial Umbrella Insurance?
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 to safeguard any business.
What Does Commercial Umbrella Insurance Cover?
Umbrella insurance policies offer coverages that aren’t afforded by the basic liability insurance policy. The coverage depends on the business type, but it often includes damages from lawsuits, attorney fees, medical expenses, judgments, settlements, and other business liability insurance costs. They 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 handles significant interactions between themselves and clients, there is potentially high liability risk. These risks increase if employees run the business using dangerous equipment or heavy machinery.
Therefore if the cost of a company’s liability claims could easily exceed the existing liability limits, then it would make sense to buy commercial umbrella insurance.
A business owner should also consider 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 at the business location and the owner has to cover the costly lawsuits and medical expenses, those costs can easily exceed the primary coverage limits.
Other businesses that benefit greatly from commercial umbrella insurance include:
- Companies in industries 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 To Obtain a Commercial Umbrella Policy
If a Massachusetts business falls under any of the categories above or meets the stated conditions, they’ll need a commercial umbrella insurance policy.
To do so, the business owner needs to first review their primary policies along with the terms of the supplemental umbrella policies. They have to confirm that they can meet the new terms requirements.
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 to secure the ideal protection for the best price.
How much does Commercial Umbrella Insurance in Massachusetts cost?
The cost of commercial umbrella policies vary depending on the business type and size, as well as the value of the underlying insurance coverage. The cost also depends 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 $1Million, 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.
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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. 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 keeps 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.
Commercial umbrella coverage limits range from $1Million to beyond $100Million. 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 business insurance coverage can be confusing and even frustrating.
Here at LoPriore Insurance we are experienced professionals with a keen interest in commercial umbrella insurance. Working with us will give you 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 your business. To learn more, get in touch today
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