A general contractor purchases Employers’ Liability Insurance with policy limits set at $1 million.The Commercial Auto Liability policy pays out the policy limit of $1 million, while the Commercial Umbrella Insurance policy covers the remaining $1 million. When the other party sues for $2 million in damages, he wins the case, and the contractor is obligated to pay the full amount. An employee of a contracting company is driving a truck with supplies to the construction site when he collides with another vehicle, causing severe injuries to the other driver.When the court awards the child $2 million, the General Liability policy covers up to the policy limit of $1 million, while the Commercial Umbrella policy covers the additional $1 million. The child is seriously injured and his parents sue for bodily injury against the contractor’s General Liability Insurance. A contracting company is working on an unsecured construction site when a child wanders into the site and trips on a wooden beam on the floor.Umbrella insurance will provide additional coverage if you have exceeded the limits for three key insurance policies: If your underlying coverage is ever exhausted due to a large settlement or multiple claims in a policy year, then the umbrella policy will cover the rest, up to the coverage limit for the umbrella policy. It essentially serves as a backup to the existing limits of liability policies. Umbrella insurance covers the same types of liability your primary insurance policies provide and simply increases the coverage to a higher dollar amount. What does Commercial Umbrella Insurance cover? If your business causes damages that exceed the limits of your commercial general liability policy, your commercial auto policy, or other liability policy, having an umbrella policy can provide additional insurance coverage. Get a quote on Commercial Umbrella Insurance What is Commercial Umbrella Insurance for contractors?Ĭommercial Umbrella Insurance is a type of insurance that covers your contracting business in the event your business causes a very serious accident or major property damage. What is the best small business insurance?.What is a certificate of insurance (COI)?.How much is general liability insurance?.How much does small business insurance cost?.CoverWallet Commercial Insurance Review.Best Legal Malpractice Insurance Companies.Business Insurance Business Insurance Business Insurance.
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