Tips for Buying a Commercial Umbrella Insurance Policy

An umbrella insurance policy provides coverage above and beyond that which can be afforded by your basic general liability policy.

Business insurance is important to have because it’s the best way to protect your business from the threats that it faces on a daily basis. What should happen if these dangers take an unusual turn and become a far greater threat to your business than your policy is prepared for?  The value of umbrella insurance is to protect the assets of your business from large lawsuits: Someone becomes incapacitated by injuries resulting from your location or product; A building is completely destroyed by your business activities, or accidental fire originating in your leased space.


Premiums vary from insurance company to insurance company, so it’s important that you shop around to get the best deal possible for your necessary coverages. An umbrella of $1 million can run from $400 to $1000 depending on the type of business risks you have.  Each additional million dollars of umbrella coverage increase the base premium by $300-$600. Ask your agent to give you a quote so you will be able to assess the value of this coverage for your business.


The umbrella insurance should cover your business assets that remain unprotected by you general liability policy. It can also provide coverage for all the liabilities your business carries other base policies for such as commercial auto, professional liability or Errors and Omissions, cyber liability, and identity liability. You should let your agent know if there are liability coverages you have with other agents so that the quote can extend over all policies.


An umbrella can have zero deductible, or a substantial deductible to reduce the cost which can also be referred to as a retention limit.  A good place to start is to obtain an umbrella insurance quote and start comparing the prices of the many variations of coverage that exist.

Umbrella insurance may prove to be the most valuable investment you’ve ever made in your business. Contact the professionals at Lou Aggetta Insurance Agency in Pleasant Hill, California. We will work with you to make sure you have the protection you deserve, all at the right price.