Commercial Umbrella Insurance for Florida Businesses

Business Insurance for Commercial Umbrella

Commercial umbrella insurance provides an extra layer of liability protection that kicks in when your primary insurance policies reach their limits. Think of it as a safety net above your general liability, commercial auto, and employer's liability coverages. When a serious accident or lawsuit exceeds your underlying policy limits, umbrella coverage prevents a catastrophic claim from wiping out your business assets. The Gordon Agency recommends umbrella coverage for Florida businesses because a single serious incident can result in claims that far exceed standard policy limits, especially in today's litigious environment.

Why Your Business Needs This

• Serious accidents can result in claims that quickly exceed your primary policy limits
• Your business assets accumulated over years can be at risk without adequate protection
• Umbrella coverage costs relatively little compared to the protection it provides
• Lawsuits in Florida can result in substantial judgments against businesses
• Some clients and contracts require higher liability limits than standard policies offer

What It Covers

Commercial umbrella insurance provides additional liability coverage above your primary general liability policy when claims exceed those limits. It extends coverage over your commercial auto liability, employer's liability, and other underlying policies. The umbrella responds to covered claims after your primary policies are exhausted, up to your umbrella limit. In some cases, umbrella policies provide broader coverage than underlying policies, covering certain claims that your primary policies exclude. The policy covers legal defense costs in addition to claim payments. Many umbrella policies cover personal injury claims like defamation, slander, and invasion of privacy. The Gordon Agency structures your umbrella coverage to coordinate seamlessly with all your underlying policies, ensuring no gaps exist.

How Much Umbrella Coverage Do You Need?

Your umbrella limit should reflect your business assets and potential risk exposure. Consider your company's net worth, real estate holdings, and other valuable assets that could be at risk in a lawsuit. Think about the nature of your business operations and the severity of potential incidents. High-net-worth businesses and those with significant risk exposures should carry higher umbrella limits. Many businesses start with one to five million in umbrella coverage. The Gordon Agency assesses your specific situation, including your assets, operations, and risk tolerance, to recommend appropriate umbrella limits that provide meaningful protection without unnecessary cost.

What Are the Requirements for Umbrella Coverage?

Insurance carriers require you to maintain specific minimum limits on your underlying policies before they'll issue umbrella coverage. Typically, you need at least one million in general liability coverage and specific minimums on commercial auto and other policies. You must maintain these underlying limits continuously, or your umbrella coverage may not respond to claims. The umbrella policy follows the terms and conditions of your underlying policies, so maintaining quality primary coverage is essential. The Gordon Agency coordinates all your policies to ensure they meet umbrella requirements and work together properly for maximum protection.