Many businesses in Framingham, Massachusetts have several different commercial insurance policies. For example, a company might have a property insurance, auto insurance, and general liability insurance policy. Even with multiple policies, though, a business may still have coverage exclusions and limits that leave it exposed to risk. If you own a business that needs more protection than standard property, auto, and liability insurance policies can provide, an umbrella insurance policy might be able to enhance your company’s insurance coverage.
Use Umbrella Insurance to Enhance Your Framingham Business’ Commercial Insurance
Umbrella Insurance is Supplemental Insurance
Umbrella insurance is a type of supplemental insurance. Most umbrella policies aren’t designed to serve as a primary policy, but rather to provide additional coverage beyond what underlying policies include.
For example, it’s usually not alright to drive a vehicle with just an umbrella policy and no underlying insurance policy. If you’re in an accident and your auto insurance coverage is exhausted, though, an umbrella policy might give you the additional protection you need.
In this way, an umbrella insurance policy is like a specialist physician. Just as the specialist intervenes when your primary care doctor’s knowledge is exhausted, an umbrella policy helps to give you supplemental coverage (according to the policy’s terms and conditions) when a primary policy is exhausted.
Two Ways Umbrella Policies Enhance Coverages
In general, there are two specific ways that umbrella insurance might enhance your Framingham company’s commercial insurance policies. (As with all insurance policies, the exact benefits that a specific policy provides will depend on the terms of that policy.)
First, an umbrella insurance might let your company extend its coverage limits. If your company, for instance, has a general liability policy with a $1 million limit, an umbrella policy might help you increase that limit. Umbrella policies often have large limits, and you might be able to increase your protection for covered claims to a total of $2 million or more. Some claims settle for large sums, and it’s becoming increasingly important to make sure your business has high enough coverage limits.
Second, many commercial policies have exclusions that limit coverage for specific claims. In fact, policies may not provide any coverage for particular types of claims. In some cases, umbrella insurance can be used to fill in coverage gaps that underlying policies have.
Talk with a Commercial Insurance Agent Serving Framingham
If you’re using an umbrella insurance policy to supplement your Framingham company’s commercial insurance policies, it’s particularly important to talk with a knowledgeable insurance agent who serves the area. Because umbrella insurance provides supplemental coverage, the precise protections a policy will give you depends both on that policy’s terms and conditions, and those of the underlying primary policies. An insurance agent will be able to review all the fine print of all applicable policies to ensure you get an umbrella policy that will indeed extend your company’s policy limits and fill in its coverage gaps.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy.