When businesses need coverage that protects them in a variety of ways, they need to purchase a commercial umbrella insurance policy. This type of policy keeps the company from having to buy many different types of insurance to cover all of the potential areas of risk and loss. There are several items that are generally included in a policy that is considered to be an umbrella policy.
Coverage on the Buildings Owned by the Business
Most business owners get involved with a commercial umbrella insurance policy when they begin to search for coverage on the buildings owned by the company. The agent will come to inspect and measure the building to determine its value. This part of the umbrella policy usually forms the basis for writing the coverage.
Coverage for Contents and Other Property Not Real Estate-Related
As the agent or broker inspects the building, it is natural to inquire about insuring the contents and other business equipment. In the same way that homeowners insurance will usually have a measure of content coverage for a house, the business will have to insure the equipment and other items owned by the business. This usually does not include vehicles.
Liability Coverages
This liability insurance begins by covering the risk from people who fall or are hurt in some way while on the property owned by the company. It will usually escalate to include workman’s compensation insurance to cover employees who get hurt on the job. Depending on the type of business, this liability insurance may extend to include harm that comes from the use of the product after it is sold.
Additional Liabilities
Malpractice liability insurance is extended to anyone who can create a negative impact on another person’s life. This includes all medical professionals, ministers, counselors, accountants, and a host of other professionals. Another often overlooked risk that must be insured is for harm caused to people or property by employees who are driving their own vehicle on company time. This type of coverage is called non-owned auto. It will even act as secondary insurance to repair the employee’s vehicle.
Natural Catastrophes and Mechanical Failures
Items like earthquake and mine subsidence need to be added into these policies if appropriate for the area. Insurance to cover the losses that can happen from mechanical systems failures are another area of coverage. This insurance will offset the costs incurred if the air conditioning or heating systems fail. Other systems can be added to this mix.
Theft
The theft can be a break-in or employee stealing. This insurance is extended to cover cash that is taken, as well as, equipment and supplies. It is important to have this insurance included with the commercial umbrella policy because the company will pay not only for the loss but for damage to the building as the same claim.
Auto Coverage
While this is not usually the case, being able to include vehicles within the same policy gives a measure of additional coverage if the company vehicle is involved in an accident that damages company property. When the same policy covers it all, there is no dispute over what insurer should settle the claim.