What is a Commercial Umbrella Policy?

A commercial umbrella policy is a type of insurance that provides additional liability coverage above and beyond what is offered by your primary insurance policies. It's designed to protect businesses from financial losses that can result from unexpected events, such as lawsuits or property damage.

For example, let's say your business is sued for $1 million, but your primary insurance policy only covers up to $500,000. Without a commercial umbrella policy, you would be responsible for paying the remaining $500,000 out of pocket. However, if you have a commercial umbrella policy with a $1 million limit, it would cover the additional $500,000, protecting your business from financial loss.