This post was written by Commercial Protection Advisor, Blaise Perrone
Is your business the 1 in 5 that gets how important commercial umbrella insurance is to the success of your business?
As a business owner, you know that accidents and unexpected events are just part of life. Whether it’s a vehicle accident, a product liability claim, customer injury, or even reputational harm—these incidents can create significant financial and legal challenges. Unfortunately, many business owners overlook one of the most important ways to protect themselves from these types of catastrophic risks: commercial umbrella insurance.
Surprised? You shouldn’t be. The reality is that 80% of businesses aren’t adequately protected for those “big, unexpected events” that could end up being business-enders. And the reason? A lack of commercial umbrella coverage.
Let’s break this down and explain why you can’t afford to ignore umbrella insurance.
What is Commercial Umbrella Insurance?
In simple terms, commercial umbrella insurance acts as a safety net for your business. It provides extra coverage beyond the limits of your existing insurance policies—covering you when your general liability, commercial auto, or employer liability limits are exceeded.
But here’s the kicker: It’s far cheaper than you might think—often costing about the same as a monthly gym membership. Think about it: a small investment now to safeguard against huge financial risk down the road.
So why aren’t more businesses getting it?
Common Misconceptions About Commercial Umbrella Insurance
A lot of business owners brush off the idea of adding an umbrella policy with one or more of these thoughts:
- “Nah, it’s just another expense.”
- “Insurance companies are just trying to get more money out of me.”
- “I’m probably already covered. It’s not worth it.”
Quick reality check: umbrella insurance is not optional. Here’s why…
Accidents Happen. And They Can Get Expensive.
Imagine this scenario: Your company gets sued for $1.5 million—a serious claim involving damages, legal fees, and settlement costs. But your general liability insurance has a limit of just $1 million.
In this case, your $1 million policy would cover legal defense costs, settlements, and judgments—but only up to your policy’s limit. That means you would have to come up with the remaining $500,000 out of pocket.
Without umbrella coverage, that money comes directly from your business funds and possibly even your personal savings, potentially putting both your company and personal finances at risk.
Now, let’s say you have commercial umbrella insurance. With coverage kicking in, that extra $500K is taken care of, and your business and personal assets remain protected.
It’s the difference between relief and catastrophe.
Who Really Needs Commercial Umbrella Insurance?
Let’s get specific. If you can answer “yes” to any of the following questions, then a commercial umbrella policy is a no-brainer:
- Do you interact with customers or clients in person?
- Do your employees use heavy or dangerous equipment?
- Do you work on other people’s property?
- Can the public visit your business during work hours?
- Do you do any off-site work?
- Do you have assets you’d like to fully protect?
If you said yes to any of these, you need a commercial umbrella insurance policy.
The Bottom Line: No Business is Immune to the Unexpected
No one can predict when disaster will strike. Whether it’s an employee mishap, an accident involving company vehicles, or a third-party lawsuit, these risks are all very real.
The question is: Are you prepared?
You can take steps today to protect your business tomorrow. By adding a commercial umbrella policy to your existing insurance coverage, you can ensure that your business—and your personal finances—remain shielded from financial ruin if the worst-case scenario becomes reality.
Don’t let your business become another statistic. Invest in umbrella insurance today, and sleep easier knowing you’ve got the coverage you need for the unexpected.
Need more information? Let’s chat!
Let’s Connect
If you’re ready to take your business to the next level and safeguard your achievements, please reach out. Together, we can ensure that you not only maintain your success but also reach for greatness.
Reach out today—let’s make your experience a little smoother, no machine-wiping required. Book a time to meet with me here.
We’d love to talk to you about the specific risks your business faces and how we can help you protect it. We have a full team of business insurance experts ready to help you. Contact us here and let’s get started!
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!