Risks come with your business. Perils like the weather, fires or theft may damage your property, inventory or assets. Someone may get hurt on your property. The products you sell might malfunction.

In each of these cases, your business insurance could come in handy. Your liability coverage can help pay medical claims clients make against the business. Your workers’ compensation insurance can help injured employees. Commercial property insurance can help you afford to repair damages to business items.

Insurance Has Limits

Insurance can only go so far in a lot of cases. Business insurance policies come with coverage limits. These are dollar values on the amount of coverage you hold. Insurance will cover your claim up to the value of that policy. You may have a liability coverage limit of $100,000 after you meet your deductible. As long as the value of your claim is $100,000 or lower, insurance may cover your claim.

However, what if your damages are $150,000? Your insurance may cover up to $100,000 of those damages. That means that there’s $50,000 in damages that don’t have insurance coverage. You may not be able to afford these costs yourself.

Consider Umbrella Coverage

There could be a chance that business damages may exceed your policy limits. An injured patron could sue you for $200,000, which is above your $100,000 limit. You could wind up paying that patron $100,000 in extra coverage. That sum could devastate a business.

Many businesses invest in commercial umbrella insurance. This adds an extra layer of protection to the business. Commercial umbrella policies will add a certain dollar amount on top of your existing liability limit.

For example, your standard business policy may provide $100,000 in coverage. If you add a commercial umbrella policy, you might consider a $25,000 limit to this new policy. Therefore, you may have up to $125,000 in coverage.

Keep Exclusions in Mind

Commercial umbrella policies aren’t airtight. These policies still have coverage limits. Before getting umbrella coverage, contact your insurance agent. They can talk to you about plan options that will cover extra risks. But, don’t buy a policy that is too expensive for you to afford. Strike a balance between cost and coverage levels.

Additionally, umbrella policies can include exclusions. That means that umbrella coverage may pay for some damages but won’t cover others. Even if your standard policy covers certain damages, you may not be able to apply the umbrella policy to the same damages. Know what your umbrella policy protects. Make sure you get coverage for liabilities that particularly concern you.

We are here to get you the right commercial umbrella insurance. Get in touch with us today by filling out our online form. We can get you the right policy for your liabilities. Call us at 972.234.5588 for more information on Dallas commercial umbrella insurance.