Umbrella liability insurance, also called excess liability insurance, boosts the protection of your general liability, employer’s liability, or commercial auto insurance policies.
If your business sees a large amount of foot traffic or deals with other liability risks, umbrella insurance may cost less than increasing the limits of the underlying policy. Umbrella liability insurance extends the limits of an existing liability policy in $1 million increments to provide coverage for the most expensive lawsuits.
This policy can provide additional coverage for your tech company’s:
You cannot purchase umbrella insurance for your tech company’s errors and omissions insurance policy.
The cost of a lawsuit can escalate quickly after an incident such as a client injury or a vehicle accident.
If any incident covered by your general liability, employer's liability, or commercial auto insurance exceeds your policy limit, commercial umbrella insurance takes care of the extra costs. This includes medical bills, lawsuits over property damage, and the like.
In the past, only large tech companies purchased umbrella liability insurance. Today, more small businesses are investing in this policy due to the escalating cost of lawsuits. This policy is right for businesses that:
General liability insurance: A big business sues you for copyright infringement and the damages exceed your policy limit.
Employer’s liability insurance: An employee blames your business for a work injury and the medical bills cost more than your regular policy limit.
Commercial auto insurance: Your business vehicle is involved in a crash where someone needed serious medical attention and the medical bills exceed your policy limit.
General liability insurance: Before you can accept a project working with expensive equipment, the client asks you to increase your policy limit.
Commercial auto insurance: You get into an accident on your way to visit a client and the property damage exceeds your regular policy limit.
General liability insurance: Your busy business fields a high number of customer injury lawsuits, which max out your regular policy limit.
Employer’s liability insurance: An employee, claiming they developed a health problem after years of work, seeks damages that exceed your policy limit.
Commercial auto insurance: Your business operates a fleet of vehicles and the costs of a high number of minor accidents start adding up.