How Much Does Commercial Umbrella Insurance Cost in Florida?

Does your business need commercial umbrella insurance? Commercial umbrella insurance is a type of coverage that pays for any claims overages on your liability policy. Instances like a customer getting hurt can have a wide range of costs. After all, it takes care of any medical payments that the injured customer may experience and any lawsuits they may bring against your company. For example, if someone gets hurt on your commercial property, and they sue you for two million dollars in order to cover the costs of treatment, lost wages, and other incidentals, and your policy has a limit of 1 million dollars, you could be responsible for paying the remaining million from for business finances. Of course, if you have a liability umbrella policy, it would pay for the excess costs between the maximum limits of your standard policy and the remainder of the bill.

How Commercial Umbrella Insurance Works

At its most basic, a commercial umbrella insurance policy can be considered a type of add-on or supplemental insurance for your commercial liability insurance coverage. This means that it covers the same types of incidents that your standard liability insurance covers, including property damage and injury claims. It also helps pay for any resulting defense costs and claims against advertising injury.

Commercial umbrella insurance is a good idea if you worry about experiencing a claim that exceeds the limits of your standard commercial liability policy. After all injury, personal property damage and claims about advertising harms can be extremely costly. If the dollar amount awarded to the injured party exceeds the coverage limits on your standard policy, your business may be liable for paying that judgment from its own finances. In the worst-case scenarios, you may be forced to sell equipment or sections of your business in order to pay the judgment. Thankfully, you can avoid this type of scenario by getting a commercial umbrella policy that pays the difference between your standard policy limits and the total claim amount.

For example, if someone files a claim against your business for a personal injury, and the claim amount is 3 million dollars while your policy limit is 2 million dollars, your standard policy would pay up to 2 million dollars. If you have a commercial umbrella policy, it would pay the remaining 1 million.

How Much Commercial Umbrella Insurance Costs

Commercial umbrella insurance is relatively affordable. For a 1 million dollar policy, you could pay just a few hundred dollars extra a year or about $40 to $75 per month.

What Affects the Cost of Commercial Umbrella Insurance?

Umbrella insurance costs can vary greatly between businesses. This is because there are several factors that affect the cost, including:

  • The location of your business
  • The type of work your business performs or its industry
  • The number of employees you have employed at your business
  • The amount of foot traffic you get per day
  • Your business revenue
  • Your claims history
  • The coverage limits of the policy

How to Keep the Cost of Commercial Umbrella Insurance Affordable

In order to keep the costs of commercial umbrella insurance affordable, it’s important to look at policies from various insurance companies and explore coverage limits. This is because different insurance agencies weigh certain factors differently, and it can affect the cost. Additionally, taking out lots of coverage can raise the price, so it’s important to only take out the amount of coverage that you are most likely to need. The good news is that an insurance agent can help answer your questions, explain the policy and recommend the best coverages for your business.

Getting Commercial Umbrella Insurance at Fearnow in Florida

Getting commercial umbrella insurance can help avoid scenarios in which you have to pay excess claim amounts due to a customer injury from your business finances. This insurance is often referred to as gap insurance because it covers the gap between your standard insurance policy and the total claim amount.

At Fearnow, we offer commercial umbrella insurance so that you can be fully protected in the case of a customer injury or if someone’s personal property is damaged. This is particularly useful if your business gets a lot of foot traffic or if the core of your business involves repairing, modifying or upgrading the property of your customers. This can include repairing and upgrading expensive computer equipment or digital devices or if your company paints, upgrades and modifies boats and yachts.

If you think your business could benefit from commercial umbrella insurance, give us a call today at 813-689-8878. Our agents can discuss commercial liability insurance with you and provide you with a free, no-obligation quote.