Always Have an Umbrella (Policy) when it Rains

What is worse than finding out that there has been a mishap in your business? Finding out that the cost of the mishap exceeds your liability coverage. This exact problem is what umbrella policies are for, and they may be the tool that saves your business in many circumstances.

Umbrella policies provide coverage to your business when you exhaust the limits of your “underlying” liability policy, and they can be attached to commercial liability, employers liability, and automobile liability policies. These policies not only increase your limits, they increase the scope of your coverage as well. Umbrella policies typically cover claims filed outside the United States or Canada, claims of contractual liability, liability for items in your care/custody/control, and watercraft or aircraft liability (which all happen to be excluded by the standard commercial liability policy).

The three main functions of an umbrella policy are:

  • to provide excess coverage for underlying liability policies.
  • to “drop down” and make payments when underlying policy limits have been totally or partially exhausted.
  • to provide a broader scope of coverage than primary policies offer.

To read more about umbrella policies and what you should look for when deciding on one, click on the September/October newsletter under the Resources tab.

To purchase an umbrella policy or to talk about your current policy in place, contact BPJ at (417) 887-3550 or email