Who Needs Commercial Umbrella Insurance?

Commercial umbrella insurance adds extra liability insurance for businesses. Certain businesses face higher risk when it comes to liability, and thus need more liability insurance. There are many different types of liability risks. Thankfully, commercial umbrella insurance can apply to any of them. This is a list of some industries that face high risks in different areas of liability. 

Professional Liability 
Professional liability insurance covers incidents related to professional negligence. This is called different names depending on your location and profession. In the U.S., this insurance is often known as Errors and Omissions insurance, or E&O insurance. In the medical industry, professional liability insurance is known as medical malpractice insurance. 

Professionals that offer specialized services may need higher limits for professional liability. Common high-risk professions for professional liability include: 

• Financial advisers
• Lawyers
• Medical professionals*
• Contractors
• Fitness professionals
• Insurance professionals 

The limits of liability insurance that medical professionals need tend to vary depending on specialty. Surgeons and OBYNs need a high amount of medical malpractice coverage and may want to invest in umbrella insurance. 

Product Liability 
Product liability covers bodily injury or property damage caused by products sold by a business. Manufacturers of heavy equipment face heavy liability dangers. Industries that see the most product liability lawsuits include: 

• Construction (bulldozers, excavators and other heavy machinery)
• Electrical (telephone lines, etc.)
• Industrial (workplace machinery) 

Commercial Vehicle Liability 
Businesses that frequently use vehicles to transport people, products or hazardous material will need higher rates of liability insurance because of the damage they can do. Heavy vehicles can cause more damage and injury in a crash, leading to more expenses. Industries that often use vehicles that face a lot of liability risk concerning vehicles are: 

• Trucking
• Manufacturing
• Construction
• Agriculture/Farming
• Towing services
• Vehicle sales/auto dealerships 

Liquor Liability 
Liquor liability relates somewhat to product liability. A good liquor liability policy will protect your business from claims concerning patron actions after said patron purchases alcohol from your establishment. Businesses that often face these lawsuits are: 

• Liquor stores
• Restaurants
• Gas stations
• Casinos
• Bars 

Keep in mind that these lists are not comprehensive. Even professions and industries that are not on this list may need umbrella insurance. Commercial umbrella insurance fills in the gaps left by your other liability insurance coverage. For example, if your professional liability insurance only covers $1,000,000 and you are sued for $2,000,000 in damages, commercial umbrella insurance will help cover the remaining $1,000,000.