What is a commercial umbrella insurance policy?

A commercial umbrella insurance policy is an extra liability insurance policy that provides an additional layer of coverage beyond what is offered by primary business insurance policies. It is designed to help protect businesses from catastrophic financial losses in the event of a lawsuit that exceeds the limits of their underlying policies, such as general liability, commercial auto, or employers’ liability insurance. Commercial umbrella insurance can cover various liability risks, including bodily injury, property damage, libel, slander, and more. It is a cost-effective way for businesses to increase their liability protection and ensure they are prepared for unforeseen and potentially expensive legal claims.