Commercial Umbrella Insurance in Knoxville, Madisonville & Kingston, TN
As a business owner, safeguarding your enterprise against unforeseen risks is essential. While several types of liability insurance, including commercial general liability insurance, often provide essential coverage, they may not be sufficient in all scenarios. Commercial umbrella insurance can provide a crucial additional layer of financial protection.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance, also known as business umbrella insurance and commercial excess liability insurance, may act as a supplement to existing liability policies. This type of coverage serves to extend the coverage limits beyond those provided by primary policies like commercial general liability insurance.
In the event of a costly liability claim, a commercial umbrella policy may kick in once the limits of the underlying policy are exhausted. This additional coverage can shield your business from substantial financial losses arising from lawsuits, property damage or bodily injury claims.
Is Commercial General Liability Insurance the Same as Commercial Umbrella Insurance?
While both commercial general liability (or general liability insurance) and commercial umbrella policies offer liability protection, they serve distinct purposes. Commercial general liability insurance provides primary coverage for common risks such as bodily injury, property damage and advertising injury. Commercial umbrella insurance supplements existing liability policies by extending coverage limits.
How Much Commercial Umbrella Insurance Do I Need?
Determining the appropriate amount of commercial umbrella insurance depends on various factors, including the nature of your business, industry risks and assets at stake. Conducting a thorough risk assessment with the assistance of an experienced insurance agent can help identify potential exposures and liabilities.
Consider factors such as the size of your business, the industry’s litigation trends and the value of your assets when determining coverage limits. While your business umbrella insurance cost may vary, the peace of mind it provides in financially safeguarding your enterprise against significant financial risks is invaluable.
Get the Right Coverage
At The Mike Dyer Agency, our dedicated team is well-versed in the world of liability insurance and can help businesses in the Knoxville, Madisonville, and Kingston, Tennessee, areas understand their options and secure appropriate commercial umbrella policies. Contact us today to get started.
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