Getting commercial umbrella insurance can shield you from the financial consequences of lawsuits that exceed your liability limits. Businesses must consider this because it covers liabilities like product liability, workplace accidents, slip & fall, and third-party property damages, which can lead to factual claims with higher insurance costs.
Besides providing great financial aid in covering lawsuits and liability claims, many businesses still need to learn what commercial umbrella insurance covers. Here’s a rundown of a few such drawbacks covered under umbrella insurance to help you make better financial decisions:
- Employee Injury Lawsuits
If your business involves handling hard-core work and workplace injuries are a possibility. It would help if you protect your business with Commercial Umbrella Insurance against heavy employee injury lawsuits. Commercial umbrella insurance covers your business for damages resulting from injuries to employees. This legal liability insurance protects your company’s financial assets if an employee is hurt. As an owner, you will be relieved and safe by having umbrella insurance to cover workplace injury lawsuits.
- Product Liability Lawsuits
Commercial umbrella insurance covers product-related lawsuits and damages, which may arise due to the fault of the products bought by the client. It limits the liability of the supplier in case they are held responsible for a particular product that has a defect or produces some harmful effect, as it may result in loss of life and injuries. Therefore, you can be protected from financial losses due to product liability in case of a lawsuit.
- Property Damage Lawsuits
Commercial umbrella insurance covers the damages you have caused to other’s property or for a loss you may have caused to their rights and interest. If the amount exceeds your liability limits and another policy does not cover it, this umbrella insurance protects your business from a substantial financial loss. If your business is responsible for any property or physical damage to a third party, you may be legally liable.
- Third-Party Property Damage
Commercial umbrella insurance also covers property damage for third-party activities caused by your company’s activities and other sudden events like weather conditions, acts of nature, etc. For example, if a tree falls on your business’ property, and the roof is damaged, it costs you an arm and a leg to cover the damages. As no such coverage is available, this umbrella insurance protects your business from any financial loss due to third-party property damage.
- Liability for Partner’s Fault or Products Impairment
It’s okay if your partner or employee has acted or done something wrong or faulty in his performance, damaging the company. Commercial umbrella insurance can cover any loss due to a third-party fault caused by your employee, partner, etc. It also covers any loss you are liable for because of some flaw in a product that you distributed.
Conclusion
Commercial umbrella insurance can be a great help if your company is likely to be hit with any of these lawsuits. So if you are currently running a business that is likely to encounter one or more of the situations talked about above, then it’s best to think about commercial umbrella insurance before something wrong happens.