When does a Georgia business need a commercial umbrella policy?

A Georgia business needs a commercial umbrella policy when a single lawsuit could exceed the liability limits on its existing policies. An umbrella sits on top of your general liability, commercial auto, and sometimes employer’s liability coverage, adding extra protection that kicks in once those underlying limits are used up. It is one of the most affordable ways to buy large amounts of liability protection.

A commercial umbrella is most relevant when a business has customers or the public on its premises, owns or uses vehicles, has employees, handles a lot of foot traffic, or works on other people’s property, because the more people an operation touches, the higher the chance of a claim that exceeds a standard limit. Whether one fits your business is a case-by-case call a licensed advisor can make in a free coverage review. The more people your operation touches, the higher the chance of a claim that blows past a standard limit.

Example: A delivery van owned by an Atlanta contractor causes a serious multi-car crash. The injury claims total $1.4 million, but the commercial auto policy only carries a $1 million limit. Without an umbrella, the business owes the extra $400,000 out of pocket. A commercial umbrella with a $2 million limit covers that gap.

For many Georgia businesses, a $1 million or $2 million umbrella costs a few hundred to a couple thousand dollars a year, which is small next to the protection it provides. When a single large claim could threaten a company’s survival, a commercial umbrella is the layer that responds, and a licensed advisor can confirm whether it fits your operation. Request a free coverage review and we will help you set the right limits.