Commercial liability umbrella insurance

Extra coverage can help you prepare for the things you don’t see coming.

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What is commercial liability umbrella insurance?

In business, you want to be prepared for both the success you anticipate and the unexpected disasters you don’t. Commercial liability umbrella insurance, commonly referred to as CLUP insurance, provides extra coverage for the worst-case scenarios that exceed the liability limits of your existing policy limits. It also offers you the flexibility to up your liability protection over multiple policies at once.

How it works:

Let’s say you have a business insurance policy that comes with $1 million in general liability coverage and a business auto policy with a combined single liability limit of $1 million. Sounds like enough, right? But what if an employee driving a company vehicle is at fault in a multi-car accident resulting in crippling injuries and property damage totaling $5 million? CLUP insurance could kick in to pay the $4 million not covered by your existing liability limits – instead of you having to pay the cost out-of-pocket.

Do I need commercial liability umbrella insurance for my business?

If you lose a liability lawsuit and the judgment far exceeds your coverage limits, could you afford to pay the excess cost yourself? No matter how thoroughly you train your employees or how rigorously you design and implement your safety procedures, bad things can still happen. Not having enough coverage could bankrupt your business.

For most businesses, the question is not if you need it, but how much, particularly if your business involves:

  • Using cars, trucks, vans, or other vehicles
  • Interacting with customers frequently
  • Working on other people’s property

You may also need a CLUP to cover other liability requirements:

  • Landlords requiring liability coverage with higher limits
  • Contracts which require liability in excess of your limits

Whether you need commercial liability umbrella insurance to hedge against catastrophic loss or to increase your limits and grow your business, your local agent can help you select coverage options that meets your unique business needs.

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This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.

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