Commercial Umbrella Insurance
Umbrella and/or Excess Liability Insurance Policies were designed to provide liability coverage in addition to general liability limits for specific risks once a policy’s coverage limits have been exhausted. When you look at your Arizona General Liability Insurance Policy limits, more times than not, the policy will have the standard limits of $1 million per occurrence and $2 million aggregate.
In conducting business in today’s marketplace, lawsuits are routinely filed for more than a million dollars, and if that were to happen to your company and you were held liable for damages in excess of one million dollars, would your company be able to pay the difference and still survive?
If your company manufactures or distributes a product, securing an Umbrella Insurance Policy with your Product Liability is not only a must but would also be a most prudent business decision that you could make for your company. As anyone who is in the products business will tell you, multi-million judgments against companies that either manufacture or distribute products are becoming all too common. Also, be aware that all the exclusions that are in your current General Liability policy also will generally apply to your Umbrella policy.
Arizona Commercial Insurance
Another area of coverage that you should also pay close attention to is having an umbrella policy excess over your auto insurance policy. Consider what a serious auto accident would do to your company’s finances? If it has been some time since you have reviewed your auto liability limits, then you should review them immediately so you aren’t faced with inadequate limits after being sued for a serious at-fault accident. In addition, if your company has employees who regularly use their cars in the course of business for your company, they also put your company at risk should they cause an accident which could lead to a serious judgment against your business. Having an Umbrella policy that is excess over your Auto Liability Insurance could mean the difference between staying in business or having to close your doors.