Commercial Umbrella Insurance in Keyport, NJ
A single lawsuit can put years of hard work at risk. When a liability claim exceeds the limits on your general liability, commercial auto or workers’ compensation policy, your business is responsible for the difference. Commercial umbrella insurance may step in to assist those underlying policies, adding a layer of higher-limit coverage that many New Jersey businesses rely on for serious claims. 
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance is a standalone policy that typically activates after the limits on an underlying liability policy are exhausted. For example, if a customer is seriously injured on your property and medical costs plus legal fees push past your general liability limit, the umbrella policy may cover the remaining balance up to its own limit.
Here are some other common scenarios where this coverage may apply:
- A delivery vehicle causes a multicar accident, and the damages exceed your commercial auto liability limit.
- A contractor’s job site injury results in a lawsuit with damages beyond your general liability coverage.
- A product you sell causes harm to a third party, and litigation costs exceed your product liability insurance limits.
Coverage details often vary by policy, so reviewing your specific contract is always a good idea.
Why Do New Jersey Businesses Need Extra Liability Protection?
Businesses in New Jersey must be prepared for litigation that potentially includes high court costs and sizable jury awards. It has minimum liability requirements for commercial motor vehicles, but they can often be insufficient for covering serious accidents, making a commercial umbrella policy a potentially critical investment. Small and mid-sized businesses are not immune to large verdicts because of their size. A commercial umbrella policy can meaningfully raise your ceiling of financial protection at a cost that is often lower than raising limits on each individual underlying policy.
Learn More
Contact Colonial Insurance Agency today to find out how commercial umbrella coverage might fit into your current insurance. Our agents can help review your existing policies and walk you through your options.