Commercial umbrella insurance provides an extra layer of liability protection for businesses, sitting on top of existing policies like general liability and commercial auto. While business owners try to determine appropriate coverage limits, a serious loss or claim can exceed those limits, leaving the business vulnerable. The umbrella policy acts as a safety net, helping to cover costs beyond the underlying policy limits and preventing potentially catastrophic financial consequences. It's particularly useful for businesses with unique or high-risk insurance needs, offering protection in situations like a severe car accident involving a company vehicle or a customer injury on business property.

Furthermore, commercial umbrella insurance can provide crucial support for legal defense costs, which can quickly escalate, ensuring businesses have adequate representation even in complex or frivolous claims, such as those requiring expert witnesses or detailed investigations. SIA strongly suggests that businesses consider having a commercial umbrella policy. There are so many facets to owning a business, and having the correct protection in the event of a large claim should be a top priority. The commercial umbrella could be the deciding factor in the ability of a business to continue after a large liability claim.