Umbrella Insurance vs
General Liability Insurance (Excess Liability)

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What's the difference between umbrella insurance vs general liability insurance? This is a good question as both offer liability protection to your business - but in complementary ways.

Umbrella Insurance vs General Liability Insurance

Umbrella Insurance vs General Liability Insurance

As a business owner, protecting yourself and your assets is your top priority. One of the best ways you can do that is with insurance. However, when it comes to insurance, there are so many types of coverage available that it can be confusing to decide what type will benefit you the most.

Two common types of coverage include general liability insurance and umbrella insurance. Not sure what the difference is between the two?

Below, we offer an outline of umbrella insurance vs general liability insurance coverage so you can determine which option will best suit your needs.

General Liability Insurance

Also referred to as business liability insurance, this type of coverage offers protection for any general claims that are filed against your business, including claims that involve bodily injuries and damage to property. Whether you're a small local business or you own a chain of national stores, you will likely have a need for general liability insurance.

What Does General Liability Insurance Cover?

General liability insurance policies can help to cover the cost of medical expenses and legal fees that are the result of any claim filed against your company that you are held liable for. This type of insurance covers the following:

What General Liability Insurance Doesn't Cover

While a general liability insurance policy offers coverage for various business-related incidents that you could be held liable for, it doesn't cover every aspect of your business. Some of the things that this type of policy does not cover include:

Umbrella Insurance

Commercial umbrella insurance vs general liability insurance. An business umbrella policy offers businesses additional liability coverage for things that are limited under general liability insurance. Essentially, this type of insurance offers businesses with an added layer of protection, for both you and your assets - excess liability. If you do not have umbrella insurance, you could end up having to pay extensive fees out of your own pocket for things are limited by your general liability insurance policy.

What Does an Umbrella Insurance Policy Cover?

As mentioned, an umbrella insurance policy offers coverage for things that are limited under your general liability policy. Examples include:

Do You Need Both Types of Insurance?

That depends on your situation. Generally speaking, for smaller businesses that don't work with a large customer base, or don't provide extensive service, a general liability policy would likely be enough. However, bigger companies that are more likely to face legal action would benefit from having both types of coverage.

Umbrella Insurance vs General Liability Insurance - The Bottom Line

We hope this article on umbrella insurance vs general liability insurance has been informative. If you are unsure whether you should simply have a general liability policy, or if an umbrella policy would be a wise investment for you too, speak with a professional insurance agent. An agent will be able to help you assess your risks and determine whether or not both types of policies would be in your best interest.

Further Reading On Commercial Umbrella Insurance

ISO Umbrella & Excess Liability Insurance Forms

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