High Point, North Carolina
2106 W English Rd
High Point, NC 27262

Why Your Business Needs Umbrella Insurance October 19, 2018

High Point, Guilford
Why Your Business Needs Umbrella Insurance, High Point, North Carolina

If a customer slips and falls on a wet floor or one of your employees is in an accident while driving a company-owned vehicle, your business has the potential to be hit with a costly lawsuit. Yes, you have business insurance in place to guard against accidents of this nature, but what if the victim’s losses and damages exceed the limits of your liability coverage? Luckily, there are extra steps you can take to protect your company and its assets. Here are a few things to know about umbrella insurance and why your business should have it.

What You Should Know About Umbrella Insurance

What Is Umbrella Insurance?

Several different types of business insurance policies offer liability coverage for specific situations, from auto accidents to unsafe premises and even cyber-attacks. However, each of these policies only covers a certain amount of damages, leaving you financially responsible for the rest in the event of an accident. An umbrella policy is a form of secondary coverage that kicks in when your primary insurance has been exhausted. For instance, if your general policy has paid $1 million for a claim but you are still liable for $200,000, an umbrella policy can cover the excess amount. 

What Does It Cover?

Commercial umbrella insurance covers three underlying business insurance policies: general liability insurance, which provides coverage for customer injuries, customer property damage, and lawsuits related to both; employer’s liability insurance, which helps pay for attorney’s fees, court costs, and settlements; and auto liability insurance. However, it’s important to remember that umbrella insurance only kicks in when the underlying policy’s limits have been reached. 

imageIs There Anything It Doesn’t Cover?

Commercial umbrella insurance doesn’t cover everything. For example, it can’t be applied to property insurance claims, which are claims that pay for business property that is stolen, damaged, or destroyed; or errors and omissions insurance, which covers professional mistakes and oversights. Remember that umbrella insurance isn’t a standalone policy, so your company must have a general business insurance policy in place before umbrella coverage can take over.

Does Your Business Need It?

No matter how careful you or your employees are, accidents can happen at any time. While your primary business insurance policies will cover most situations, a single lawsuit could put you out of business. An umbrella insurance policy is crucial for protecting your investments against claims that exceed your underlying coverage.


Since 1963, the Zimmerman Insurance Agency has provided complete insurance services and valuable peace of mind to business owners throughout North Carolina’s Triad area. After evaluating your businesses, their experienced agents will identify the risks you face and assemble a customized package designed around your unique needs. If you’re interested in an umbrella insurance policy for your business, visit their website or call (336) 883-6512 to request a quote today.


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