What Is Commercial Umbrella Insurance?

When you’re shopping for business insurance, you will hear many terms thrown around. One of these terms may be commercial umbrella insurance. But what exactly is commercial umbrella insurance and how can it help your firearms business? Read on to learn more:

How umbrella insurance works

Commercial umbrella insurance covers costs that go beyond typical liability coverage. It is like an actual umbrella, covering the limits of your ordinary insurance.

For example, let’s say your liability insurance offers $100,000 in coverage, but you’ve been sued for $200,000. Your umbrella insurance would cover the extra $100,000.

What does it cover?

Commercial umbrella insurance covers what your typical liability insurance doesn’t, but what, exactly, does that mean? Below are just some of the many things it can cover:

Medical expenses
Attorney fees
Legal damages
Property damage
And more

Types of umbrella insurance

There are also various other types of umbrella insurance which will impact what it will cover. These include the following:

Employment practices liability insurance
Directors and officers liability insurance
Fire legal liability insurance
Liquor liability insurance
Hire and non-owned auto liability insurance

As a business in the firearms industry, your main concern will be the first two: employment practices and directors/officers liability insurance.

Deciding which type of umbrella insurance to get, though, can be difficult. At Firearms Insurance Agent, we can help. Contact us today at 855-486-2667.

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