Accidents happen. Even small businesses and small contractors need added protection against catastrophic liability loss. Consider a hypothetical scenario in which Handyman Hal is going about his usual daily business of contractor remodeling. Hal runs out of drywall tape on the job. While driving to the local hardware store to purchase additional tape for the contracting job, Hal distractedly runs his truck through a red light and causes a major automobile accident. The car Hal hits is totaled, and the occupants, a young mother and toddler, both sustain extensive injuries.

Real life is full of routine activity that can transform into real accidents of serious and unintended consequence. It could be you driving hurriedly to get back to finish a job or one of your employees driving the company truck to pick up supplies. It could be anyone. While you cannot undo the accident, you can protect your business … your financial livelihood … with adequate insurance coverage.

One tragic automobile accident could easily bankrupt a business with low limits of liability insurance. An accident like the one described above could possibly run through the limits of Handyman Hal’s commercial primary automobile liability insurance policy. Commercial Umbrella liability insurance is designed to provide added protection for any business, no matter the size. (Minimum premium for $1,000,000. Umbrella liability limit begins at $500.)

Commercial Umbrella liability coverage is typically written over two primary coverages: the commercial general liability (CGL) policy and the commercial auto liability (CAL) policy. The Umbrella policy provides an added layer of liability protection in the form of higher limits. In the Handyman Hal example, even a primary CAL policy with a $1,000,000. liability limit could potentially be “used up”. Once the liability limits are exhausted on the primary scheduled CGL and/or CAL, the commercial Umbrella policy responds. Note the Umbrella limits are not activated until the primary limits are exhausted. Usually the Umbrella will follow the terms and conditions stated in the scheduled primary policies, i.e. follow form. In some cases, the Umbrella may broaden coverage, and in some cases, the Umbrella may restrict coverage. Individual Umbrella policy terms and conditions must be carefully reviewed. Contact your TRUSTED INDEPENDENT AGENT AT RICHEY-BARRETT INSURANCE to discuss what is available to meet your specific needs.