Commercial Umbrella Insurance – How To Protect Your Small Business
Many Ontario businesses are preparing to reopen with some limitations after a frustrating period of ever-changing pandemic restrictions affecting retailers and services that were deemed non-essential.
As the province approaches stage 3 of its three-stage reopening plan, many business owners are wondering what they need to better protect their business. Business umbrella insurance may be the solution they need as it provides an extra layer of coverage over and above standard liability policies.
This type of insurance is designed to fill coverage gaps when your primary commercial general liability is exhausted. Umbrella insurance can protect your company from any liability claim, including libel, reputational damage, vehicular accidents, product liability, or customer injury.
Some industries face more risks than others, which can dictate the type of coverage you need. Some factors include:
- The existing amount of underlying coverage
- Nature of business
- Business size
What does umbrella insurance cover?
This line of coverage is often associated with liability risk. Umbrella coverage is designed to sit on top of commercial general liability, commercial auto insurance (or hired and non-owned auto), employee benefits liability, and often provides umbrella protection over several locations and properties.
An umbrella insurance policy can help cover the financial costs associated with potential lawsuits or settlements from a third party claiming for bodily injury and/or property damage. This specific type of insurance also carries a broader sense of the terms “bodily injury,” “personal injury,” and “advertising injury” than traditional general liability.
How much do I need?
A Merit insurance broker will individually assess your business to determine the proper limit. When selecting a limit for your small business, your broker will review:
- If your industry, profession, location, or the products you make or sell make your small business an easy target for a big settlement.
- If other small businesses in your industry carry higher limits. If so, why?
- If clients regularly visit your bricks and mortar location.
Commercial umbrella insurance can benefit your corporation no matter what size your company is. Speak with one of our Merit brokers to get the right type of coverage for your business. Click here to learn more or get a Commercial Umbrella Insurance quote or contact Merit Insurance Brokers to learn more.
