Can I use umbrella insurance if I don’t have a primary business insurance policy?

As a business owner, commercial insurance provides helpful protection in many different areas for you and your business. However, sometimes the limits of your commercial insurance can be challenged by an unforeseen incident or situation. Once your insurance has covered an accident or circumstance up to the pre-set limits, you may need more insurance if your commercial insurance has been exhausted. Our Berks County Insurance team understands that many Reading, PA business owners may not understand all the benefits of commercial and other business insurance forms. 

What is Umbrella Insurance?

In short, umbrella insurance is backup or extra insurance that kicks in if and when your primary business insurance reaches its limits. As a business owner, you may encounter a situation that exceeds the limits of your primary business insurance policy. When this happens, more insurance is required to financially cover the circumstance or situation. Umbrella insurance is designed to provide coverage when a circumstance or situation has exceeded the limits of your primary insurance.

Can I use umbrella insurance if I don’t have a primary business insurance policy?

No. Umbrella insurance is designed to function with your primary insurance policy, not replace it. However, there are situations when umbrella insurance may work like a primary business insurance policy. This happens in situations or circumstances where an incident isn’t covered under your primary policy. Your umbrella insurance may cover the situation simply because your primary business insurance policy doesn’t cover a circumstance or situation. If you have more questions regarding umbrella insurance, call us. We’d happily help you explore your options and answer your questions.