Commercial Umbrella Insurance in Vermont 

What is Commercial Umbrella Insurance?

All insurance policies have limits, a maximum amount they will pay out for a specified event. While these limits are designed with common situations in mind, they are not a guarantee that your business will not have to pay beyond this amount. If you are found responsible for $3 million worth of damages, such as in a wrongful death lawsuit, and your general liability policy limit is $1 million, you could be responsible for the other $2 million out of pocket. These costs would cripple most Vermont businesses. Commercial umbrella insurance is a secondary form of insurance, increasing your limits and broadening your coverage beyond your existing liability policies.

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Vermont Businesses at Risk

Every business in Vermont is at risk for being sued. Whether you provide a professional service or manufacture a product, if you make an error that harms a customer, they could sue you for their damages. Everything from a parking lot slip-and-fall to a product that causes death could find you in court defending yourself.

The costs of a lawsuit are extremely high, with defense costs, court fees, and other expenses. Even if you are found not liable and are not made to pay damages, your business will still be harmed financially. In certain circumstances, as a business owner your personal finances could also be at stake.

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Commercial Umbrella Insurance Coverage Basics

A commercial umbrella policy is a secondary form of insurance to provide additional liability protections. When your legal costs, settlements, and damages exceed the limits of your primary liability policies, your umbrella policy can then provide additional coverage. If a situation is excluded from your primary policy, your umbrella policy may be able to provide primary coverage.

Umbrella policies are an affordable way to add additional liability coverage. Because it is a secondary policy, you are required to have a minimum amount, often $1 million, of primary liability insurance. Only once your primary policy is exhausted will your umbrella policy kick in. This allows your umbrella policy premiums to remain low, while offering you millions of dollars in liability coverage. 

Why Buy Commercial Umbrella Insurance? To Save Your Company

Each year, millions of lawsuits are filed with the United States Court system, many of them against businesses for damages caused by a product or service. These lawsuits can be very expensive, with defense fees, court costs, settlements, and awarded damages. Even if you win your case, you are still out the legal fees and lost time. While many Vermont businesses carry general liability insurance and other liability protections, it may not be enough to truly protect your business. Commercial umbrella insurance provides an extra layer of protection in this litigious society.

Learn How to Protect Your Business

The best way to defend yourself is to have appropriate liability coverage for your business. Products including general liability, professional liability, and product liability can provide important financial protections. However, if you are found responsible for damages beyond your policy limits, you are responsible for those costs out of pocket, possibly destroying your business.

The costs of a lawsuit could cripple your VT business. Even with traditional liability insurance, you may be facing settlements requiring your business to pay millions of dollars, or even dipping into your personal finances. Commercial umbrella insurance can help cover additional expenses, ensuring your business can stay afloat even when responsible for severe injuries and damages.

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