How Commercial Umbrella Insurance Protects New Jersey Businesses

When growing and managing a small or large business in New Jersey, it is critical to carry a generous amount of liability insurance to protect the business from any number of risks and exposures on the commercial premises that could result in the business having to pay out damages. The challenge is that your regular insurance policies have liability limits, and if there is ever damage that exceeds these limits, the business can be at risk of paying out damages directly. To address this concern, it often makes sense for a New Jersey business to purchase a commercial umbrella insurance policy.

Commercial umbrella insurance protects a business in case it goes over the limits on its regular insurance policy. For example, if the company has a general liability policy with a limit of $500,000, and there is a damage claim for $1million, the commercial umbrella policy will cover the additional $500,000, so the business does not have to pay it themselves.

The importance of this additional coverage cannot be overstated. If you have a growing business in New Jersey, all it takes is one mishap on your business premises for the survival of the entire business to be at risk. All the hard work over the previous months or years could vanish overnight with just one excessive liability claim. Commercial umbrella insurance can put your mind at ease and allow you to focus on the more important task of running your business.

One commercial umbrella insurance policy can extend your liability limits to several of your other insurance polices, usually at a more affordable rate than raising the liability limits of each individual policy. Though umbrella policies are fairly comprehensive, some exclusions may apply, so it is always best to discuss this with your agent and decide the insurance that’s best for your business.

If you have any questions about how this relates to you and your business, we have a team of commercial insurance experts who can answer your questions. Contact us today for more information.