Commercial Umbrella Liability

As a business owner, you’ve achieved remarkable goals. You’ve poured your heart and soul into building a thriving business that contributes to the community and the economy! But, imagine what would happen if a high cost accident or lawsuit came out of left field. You could possibly lose everything you’ve worked so hard to achieve.

We’ll help keep your business dreams secure with a Commercial Umbrella Policy — this coverage provides you with an additional layer of liability protection above your business liability limits, so you’ll get the coverage you need to deal with the unexpected.

With coverage that’s built for your business, you can find peace of mind to focus on what’s most important — putting your passion to work and growing your dream!

What is commercial liability insurance?

Picture this: A customer is injured at your place of business or by a product you sell, and you end up with a lawsuit, medical costs and legal bills to the tune of $2 million.

As a savvy business owner, you already have an American Family business insurance policy with liability limits up to $1,000,000. And you’ve wisely supplemented that with a commercial umbrella policy that has liability coverage up to $2 million. Your primary business policy would cover the first $1,000,000, while your business umbrella policy would take care of the remaining $1 million.

What does a commercial umbrella liability policy cover?*

Consider these scenarios:

• A visitor to your property slips and falls.
• A customer suspected of stealing later proves her innocence and sues for defamation of character.
• An employee falls asleep at the wheel while on company business and collides with another vehicle, killing two of its occupants.

American Family’s Commercial Liability Umbrella Coverage gives you peace of mind when you need it. It’s provided by a package of insurance protection custom-built for the needs of business owners like you whose businesses need additional coverage above and beyond underlying policy limits.

Our CLU provides coverage over your primary policies in these key areas:

Commercial General Liability. Provides coverage for:

• Bodily Injury
• Property Damage
• Personal & Advertising Injury
• Defense Costs & Attorneys’ Fees
• Limited Contractual Liability
• World-Wide Coverage for suits brought in U.S.

Garage Liability Insurance. If your business performs auto service work, you’ll want garage liability insurance in addition to your commercial general liability coverage. Eligible businesses would be:

• Auto Body & Paint Shops
• Auto Detailing Shops
• Auto Engine Repair
• Auto Glass Repair
• Auto Roadside Assistance

Business Auto Liability. When Business Auto policy is endorsed to your Commercial Umbrella policy, it will pay for bodily injury and property damage liability claims that result from the use of your owned autos used in your business. Coverage may also be extended to cover bodily injury and property damage liability claims that arise from the use of non-owned, hired or borrowed autos used in your business.

Employer’s Liability. Helps cover claims brought as a result of your negligence causing an employee’s workplace injury. If an employee sues, this will help pay for lawyer’s bills, court costs and settlements.

What does a commercial umbrella policy not cover?

It’s important to note that though Commercial Umbrella insurance can protect your business in many ways, not everything will be covered.

For example, the following types of claims would not be covered:

• Uninsured/Underinsured Motorist
• Employment-Related Practices Liability
• Pollution (including clean-up expense)
• Damage to property loaned to you
• Damage to personal property in your care, custody or control
• Property damage to your work
• Errors & Omissions
• Professional Services (coverage may be extended in the Commercial Umbrella for certain professional services such as Beauty/Barber Shop services)

It’s important to keep in mind that you’ll need the appropriate underlying policy in place in order to avoid expensive coverage gaps.

When do you need a commercial umbrella policy?*

You do what you can to keep your business safe from the unexpected, but that doesn’t mean your business isn’t vulnerable — accidents happen after all. Your primary business insurance may be sufficient to protect you against the usual kinds of loss. But if an award or settlement exceeds the limits of your policy, that additional financial burden falls to you and your company. Often, awards in the aftermath of serious accidents or other situation can exceed basic policy limits by millions of dollars.

You might consider getting Commercial Umbrella Insurance if:

• You need more insurance protection and are on a tight budget. Buying a Commercial Umbrella policy may be more cost effective than buying more coverage on your underlying policies.
• You want additional defense cost protection if you incur a large claim that exceeds your underlying policy limits.
• You may have job contracts with others that may require you to carry an excess umbrella policy.
• You want to keep your personal assets safe in the event of a big lawsuit.
• You need the security of broader insurance protection. In some situations, Commercial Umbrella insurance may cover claims not covered by underlying policies.

Here are some of the types of business establishments we believe should consider a Commercial Liability (CLU) Policy. Ask your American Family Insurance agent if your business qualifies.

• Retails Stores
• Beauty Shops
• Barber Shops
• Artisan Contractors
• Restaurants
• Funeral Homes
• Offices
• Service Stations
• Others...

How is commercial umbrella insurance different than personal umbrella insurance?

It’s pretty simple, actually. Where Commercial Umbrella Insurance offers extra liability protection for your business, Personal Umbrella Insurance provides an additional layer of protection beyond the liability coverages that’s already built into your existing personal insurance policies, like your home, auto, watercraft, recreational vehicles, etc. Here’s more about how Personal Umbrella Insurance is a super-reinforced and expanded safety net that helps keep you extra safe and secure.

From incidents to accidents, trust American Family Insurance. We’ll focus on keeping your business protected so you can focus on keeping your business accident free. Want to get started with a commercial umbrella policy? As long as you already have a primary business insurance policy with American Family, you’re all set — make a wise business move and help protect your dream. Connect with your agent today.