No, commercial umbrella insurance is not a legal requirement in New York — this doesn’t necessarily mean you don’t need these policies, however. Not to mention, some contracts or agreements may require businesses to carry them.
New York Commercial Umbrella Insurance
Commercial umbrella insurance is vital in a litigious society when there’s a high demand for coverage beyond what a basic plan offers.
Get to know NY commercial umbrella insurance
New York commercial umbrella insurance is an asset for any New York business looking to safeguard its assets.
It offers protection against the risks and potential financial losses of legal action that you won’t want to be caught without.
This extra layer of protection is a game-changer when claims exceed the limits of a primary policy.
What is commercial umbrella insurance?
Commercial umbrella insurance provides liability coverage on top of existing policies. Think of it as an overflow.
So, when a company is sued or needs to make a large claim, commercial umbrella insurance catches any excess amount a basic policy doesn’t.
This coverage can provide many things, including:
- higher policy limits
- more peace of mind
- broader coverage
Here’s an example: Say your general liability policy has a limit of $1 million, and you face a claim of $2 million. A commercial umbrella policy would provide extra coverage beyond that first $1 million.
Risks typically covered by commercial umbrella insurance in New York
Specific coverage in a commercial umbrella insurance policy differs from provider to provider. But these policies tend to include some of the same fundamental coverages:
Coverage for incidents of bodily injury
This insurance applies to physical injuries like those from a slip and fall. It covers the associated medical expenses, lost wages, and pain and suffering.
Coverage for property damage
Commercial umbrella insurance offers protection against property damage claims made against a business. Example scenarios include fires or floods and water damage caused by negligence.
Product liability coverage
This covers claims related to the products a business manufactures or sells. For example, for defects or design flaws that cause a customer harm.
Coverage for personal injury
Personal injury spans from libel and slander to defamation of character and invasion of privacy. Commercial umbrella insurance helps cover the costs of fighting any of these claims.
Coverage for advertising injury
Advertising injury refers to claims arising from the content of your business’s advertising, marketing materials, or website. For example, claims of copyright infringement, trademark infringement, defamation, or misleading statements.
Choose HCP Insurance for commercial umbrella coverage in New York
At HCP Insurance, we understand the importance of not only providing comprehensive coverage, but also tailoring it to the unique industry in which your business operates. Let’s get you the right commercial umbrella protection without breaking the bank!
Who needs commercial umbrella insurance?
Anyone who owns a business and wants to protect themselves from the financial repercussions of a lawsuit or liability claim should consider commercial umbrella insurance.
A few industries in New York face exceptionally high commercial umbrella claims and lawsuits. These include:
- Professional services
Examples of claims commercial umbrella insurance can protect against
A trucking business is involved in a catastrophic accident. The accident results in many fatalities and extensive property damage. The cost of medical bills, funeral expenses, property damage, and legal fees quickly add up to millions of dollars.
Luckily, their commercial umbrella insurance policy has a high limit. They have enough coverage to cover these expenses and stay in business.
A construction company works on a high-rise building in New York City. One of its workers falls from the building. They sustain severe injuries requiring hospitalization and ongoing medical treatment.
The medical bills, lost wages, and legal fees associated with this incident add up to hundreds of thousands of dollars.
The construction company has a primary liability insurance policy with a limit of $1 million. Unfortunately, this isn’t enough to cover the entire cost of damages and legal fees. Without commercial umbrella insurance, they’ll need to pay that difference out of pocket. This often comes at the expense of other business operations.
A hotel hosting an event faces a lawsuit when an attendee slips and suffers serious injuries. The hotel’s general liability insurance has a $1 million limit, but the claim exceeds that amount. Luckily, their commercial umbrella insurance with a higher limit covers the remaining expenses, protecting the hotel from significant financial burden and potential bankruptcy.
Frequently asked questions about commercial umbrella insurance
This FAQ section about New York commercial umbrella insurance may help with any lingering questions.
Commercial umbrella insurance can provide extra coverage beyond primary insurance policy limits.
This extra coverage often includes general liability, auto liability, and employer’s liability insurance.
Let’s say a liability claim exceeds the limits of these primary policies. Then, commercial umbrella insurance can provide more coverage up to the policy limit.
Pro-Tip: Are you reporting a claim to your liability carrier, but you have an umbrella policy with another? Make sure you report to both at the same time.
Does your business face liability risks beyond the limits of your primary insurance policies? Then you may benefit from commercial umbrella insurance.
Start by assessing your specific insurance risks. Then, consult with an insurance provider to determine the appropriate level of coverage for your business.
The insured usually buys commercial umbrella insurance through an insurance provider. It’s purchased either as a standalone policy or as an endorsement of an existing liability insurance policy. An insurance provider specializing in commercial insurance can help you assess your needs and find a plan that fits.
Yes, you can often customize commercial umbrella insurance policies to meet the specific needs of your business.
These customizations may include adjusting the coverage limits, adding or removing coverage for specific risks, and adding endorsements to cover unique liability risks.
Commercial umbrella insurance in New York
The HCP team can work with you to fully understand your business and tailor a plan to its exact needs.