The Difference Between Commercial and Personal Umbrella Insurance

You carry solid insurance coverage, but a major lawsuit or catastrophic accident can push costs well beyond your standard policy limits. That is where umbrella insurance steps in, and understanding which type you need, personal or commercial, can make a significant difference in how financially protected you are when it counts most.

How Personal Umbrella Coverage Works

A personal umbrella policy extends the liability limits on your home, auto and other personal policies. If a guest is seriously injured at your home or you cause a multi-vehicle accident, your personal umbrella picks up where those underlying policies leave off. It may cover legal fees, medical costs and judgments that exceed your standard limits. This financially protects your savings and assets from being seized to cover the gap.

Why Businesses Need Commercial Umbrella Coverage

A commercial umbrella policy functions the same way but sits on top of your business insurance policies, including general liability, commercial auto and employer’s liability. The stakes in a business environment are often higher, and the scenarios more complex. Situations in which a commercial umbrella policy can help include the following:

• A customer slips and falls at your business location and sues for an amount beyond your general liability limits.
• One of your drivers causes a serious commercial vehicle accident with extensive injuries and property damage.
• A product you manufacture or distribute causes harm, triggering a lawsuit that exceeds your product liability limits.
• A subcontractor working on your job site is injured and your employer’s liability limits are not enough to cover the claim.

Choose the Right Coverage

Contact Specialty Coverage Insurance Agency today to review your current coverage and find out whether a personal umbrella, commercial umbrella or both belong in your insurance portfolio. We proudly serve clients in Mystic, CT and welcome the chance to help you build a risk management plan that aligns with your life and your business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.