Commercial Umbrella Insurance
Extra liability protection when your standard policy limits aren’t enough
$1M+
Additional Coverage
Umbrella Insurance
Commercial Umbrella Insurance Ankeny/Des Moines
What is commercial umbrella insurance? A rain umbrella protects you from getting wet but doesn’t stop the raindrops from falling. Umbrella liability insurance is similar in that it cannot prevent accidents or mishaps, but can make those things less devastating financially.
Your primary insurance coverage, like your homeowners and auto policies, includes liability coverage up to a certain limit. Liability is your legal responsibility to pay for damages to a person or to a person’s property. An umbrella policy increases your liability coverage substantially—more types of claims are covered and at a higher limit.
Who Can Benefit From Commercial Umbrella Insurance?
- Anyone with assets to protect
- Anyone who drives a vehicle, including a car, motorcycle, boat or ATV
- Anyone who owns or rents a home
In our litigious society, we must protect our assets from lawsuits. The primary reason for carrying umbrella insurance is that you never know what you may be responsible for. Accidents happen, and when they do, you may be held legally responsible for resulting bodily injury and property damage as well as legal fees, all of which can quickly escalate to hundreds of thousands of dollars.
If you cause an accident, the legal system makes a judgment that, between you and the injured person, whether or not you should be the one to shoulder the financial repercussions. The person who suffered damage is then entitled to collect what is owed by claiming insurance proceeds. If the money provided by the insurance company is inadequate, a claim may be made on your income, assets, and savings.
Adequate liability insurance protects you from these financial consequences. Pain and suffering, lost wages, medical bills and property damage are some of the items you may be sued for that are covered by umbrella liability insurance.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance is an excess liability policy that provides additional coverage above and beyond the limits of your underlying business insurance policies. When a claim exceeds the maximum payout of your general liability, commercial auto, or employer’s liability policy, your umbrella policy steps in to cover the remaining costs. It acts as a financial safety net, protecting your business assets from catastrophic losses that could otherwise threaten your company’s survival.
How Does It Differ From Excess Liability?
While both umbrella and excess liability policies provide additional coverage limits, there’s a key difference. Excess liability simply extends the limits of a single underlying policy. Commercial umbrella insurance, on the other hand, can sit over multiple underlying policies — such as general liability, auto liability, and employer’s liability — and may also provide broader coverage for certain claims not covered by the underlying policies, giving your business more comprehensive protection.
What Does Commercial Umbrella Insurance Cover?
A Commercial Umbrella insurance policy provides additional protection by increasing coverage for liability in two ways:
Increases the dollar limit of liability coverage for primary policies
Example: Assume the coverage limit on the liability portion of your auto insurance totals $300,000. If you purchase an umbrella policy of $1 million, and you cause an accident that exceeds the $300,000 limit on your auto policy, your umbrella insurance can cover the remainder, up to $1 million dollars (a total of $1.3 million total liability coverage, in this case).
Covers claims excluded by primary policies
Example: Typical liability policies may not cover damage claims resulting from false arrest, libel, slander, or defamation of character. If you are held liable for damages caused by these types of claims, the umbrella policy can assist you in covering the costs.
The $300,000 liability limit in the prior examples may seem like a lot of coverage in the abstract, but can easily be exceeded in serious accidents.
How Much Umbrella Insurance Do I Need?
The right amount of liability insurance for any individual, family or business depends upon a number of factors. These include the risks you face and the assets you want to protect. For example, if you have a passion for speed boating, you have an increased risk over someone who only takes a dinghy out on the occasional fishing excursion. If you have a high income, you are more likely to be sued in the event that you are at fault for injury to others.
Some professionals recommend that you add up all of your assets and then double that figure to determine the amount of liability coverage needed. Others look to the costs of medical payments and legal fees, which can vary considerably by region.
Umbrella Liability Claims Examples:
Accident:
Despite your careful driving and best intentions, you cause a serious accident. Your umbrella policy kicks in when the property damage exceeds the $300,000 liability coverage limit on your auto policy.
Dog Bites:
Your dog escapes the yard and attacks a neighbor, resulting in extensive medical costs. The umbrella policy covers the excess costs of hospitalization, care and rehabilitation after your homeowner's liability coverage has been exhausted.
Trampoline:
Your son's school buddies are playing on the trampoline in your yard and one of the boys flies off, suffering a spinal cord injury. Your umbrella liability manages the excess costs after you exceed the limits on your homeowners or renters liability policy. You hope these situations never occur, but statistically, they sometimes do. You can limit the consequences of an umbrella insurance policy.
Do You Need More Liability Insurance Coverage?
You may want to give special consideration to an investment in umbrella insurance in the following circumstances:
- You are at greater risk for liability if you own a pool or trampoline or ride a powerful motorcycle. Statistics indicate that these activities and others are more likely to lead to expensive liability claims.
- If you have assets at risk, including retirement savings, business income, college funds and other assets with total values that exceed the liability maximum on your home or auto policy.
- One of the best reasons to own an umbrella policy is the attractive price for peace of mind. The premium you pay for the maximum claim payout tends to be low. In other words, relative to the protection afforded, umbrella insurance can be a great deal.
How Much Does Commercial Umbrella Insurance Cost?
13% of Commercial Umbrella injury liability awards and settlements are $1 million or more. An estimated 1 in 5 people with considerable wealth do not have umbrella coverage. An average cost of about $380 per year can provide $1 to $2 million of protection.
It will also cover you for things such as libel and slander. For about $150 to $300 per year, you can buy a $1 million Commercial Umbrella liability policy. The next million will cost about $75, and $50 for every million after that.
Get a free quote from Densmore Insurance Strategies, Inc. and get all of your questions answered. At Densmore Insurance we can give you information on the kinds of liability risks and costs associated with your particular situation. Contact us today for an umbrella insurance quote.
Who Needs Commercial Umbrella Insurance?
Any business that faces liability risks should consider umbrella coverage. Here are industries that benefit most from this additional layer of protection.
Contractors & Construction
High-risk work environments with heavy equipment and multiple subcontractors create significant liability exposure.
Transportation & Trucking
Fleet operations face substantial auto liability risks from accidents involving large commercial vehicles.
Retail & Restaurants
High foot traffic businesses face frequent slip-and-fall claims and product liability lawsuits.
Healthcare Providers
Medical practices and facilities face malpractice claims that can quickly exceed standard policy limits.
Manufacturing
Product liability, workplace injuries, and environmental claims can result in multi-million dollar judgments.
Property Management
Landlords and property managers face premises liability claims from tenants, visitors, and contractors.
At Densmore Insurance Strategies, Inc., our insurance agency provides Commercial Umbrella Insurance to small and mid-sized companies near Ankeny Iowa, Altoona Iowa, Bondurant Iowa, Des Moines Iowa, West Des Moines Iowa, Johnston Iowa, Waukee Iowa, Grimes Iowa, Polk City Iowa, Pleasant Hill Iowa, Norwalk Iowa, Huxley Iowa, and Urbandale Iowa. We are licensed to serve Iowa, Illinois, Nebraska, Florida, Missouri, Arizona, Texas, and Tennessee.
Why Choose Densmore Insurance Strategies for Umbrella Coverage
Great Reputation
We have an excellent reputation in the insurance industry and are known for our high-quality products and services.
Emergency Services
We offer emergency services to our clients in the event of an accident or natural disaster. We are here to help you when you need us the most.
Competitive Rates
We offer competitive rates on our products and services. We work hard to get you the best possible rate on the coverage you need.
Dedicated Team
Our team is dedicated to providing our clients with the best possible service. We are here to answer any questions and help you find the right policy for your needs.
Local Iowa Expertise
As a local Iowa agency, we understand the unique risks and challenges businesses face in our region and can tailor coverage accordingly.
Independent Agency
We work with multiple top-rated carriers to find you the best coverage at the most competitive price, not just one company's products.
Frequently Asked Questions
Get answers to common questions about commercial umbrella insurance.
How much does commercial umbrella insurance cost?
The cost varies based on your industry, business size, number of employees, claims history, and the amount of coverage you need. Many businesses can get $1M in umbrella coverage for as little as a few hundred dollars per year. Contact us for a Commercial Umbrella quote based on your specific situation.
How much umbrella coverage do I need?
Does umbrella insurance cover everything?
What underlying policies do I need before getting umbrella coverage?
Can I get umbrella insurance without general liability?
Typically, no. Umbrella insurance is designed to sit on top of your existing liability policies. Most insurance carriers require you to maintain certain underlying policies with minimum coverage limits as a prerequisite for umbrella coverage.
Is commercial umbrella insurance the same as an excess policy?
Not exactly. While both provide additional limits, an excess policy only extends the limits of a single underlying policy and follows its same terms. An umbrella policy can cover multiple underlying policies and may provide broader coverage for claims not covered by the underlying policies.
How does the claims process work with umbrella insurance?
Can small businesses benefit from umbrella insurance?
Absolutely. Small businesses are often more vulnerable to catastrophic claims because they have fewer financial resources to absorb large losses. A single lawsuit exceeding your policy limits could threaten your entire business. Umbrella coverage provides affordable peace of mind.
Contact Us
You deserve the best insurance coverage and we can provide it.
We know that you have a lot of choices when it comes to choosing an insurance company. That’s why we work hard to make sure that you always have the best possible coverage at the best possible price. We want you to be confident that your family is taken care of in case something happens. That’s why we offer a wide variety of insurance policies, so you can find the perfect one for your needs. And our team is always here to help – so don’t hesitate to call us if you have any questions.
Request a free quote today. You can contact us at (515) 967-3390
Phone
(515) 967-3390
info@densmoreis.com
Address
85 Paine Street SE, Suite G, Bondurant, Iowa 50035
