Commercial Umbrella Insurance

Commercial umbrella insurance sits on top of your existing NEXT general liability policy. It covers most of the same terms, conditions and occurrences of your underlying coverage.

In the event of a catastrophic event, having an umbrella policy offers a higher limit than general liability without umbrella coverage.

If you file a claim, the limit of your general liability policy is exhausted first. Then the umbrella coverage kicks in as a safety net to cover additional losses up to the limit and terms of your policy.

Business umbrella insurance can help protect you from unexpected expenses that can affect your business and lead to lawsuits, such as:

• Damage to another person’s property

• Injuries

• Advertising harm

• Accusations of libel or slander (personal injury or reputational harm)

A business umbrella policy can add up to an additional $2 million beyond your existing NEXT general liability policy limit. Coverage with both would be up to $4 million.

Note that in Illinois, Nevada, New York, Texas, Utah, Colorado, Pennsylvania and Mississippi NEXT offers excess liability insurance rather than commercial umbrella.

Some clients and agencies will require you to have a certificate of insurance that includes $2 million in coverage before they’ll work with you. A business umbrella policy on top of your NEXT general liability policy may help satisfy this requirement.

If you want to rent, many commercial properties you could also be required to have business umbrella coverage as part of your commercial lease.

The commercial umbrella insurance coverage you need depends on several factors, including:

• The type of work you do

• How many employees and subcontractors you have

• The level of risk your company faces

• The state where you work

When you complete an instant quote online with NEXT, you can review options and adjust limits to your preference.

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In a survey of 500 small business owners, more than half (52%) chose to carry general liability coverage for protection against the expense of medical payments, property damage and lawsuits.

If your business is exposed to greater liability risk, you should consider a commercial umbrella policy.

This could include factors like:

• You’re located in a high-traffic area, such as a busy mall or shopping center.

• Your work can possibly damage expensive property or assets.

• You manufacture, store, rent or sell anything that could be considered dangerous.

• Your business regularly does work with vendors or clients who are any of the above.

Some higher-risk small business industries that should think about business umbrella coverage include:

Construction

General contractors and other construction professionals are often required to have commercial umbrella liability policies to get professional licenses or work on certain jobs. Business umbrella insurance can also extend the limits of your liability for property damage or bodily injury.

Restaurants, catering and food service

Injury and accidents can be a risk for a restaurant business, catering company or other food and beverage services.

A commercial umbrella policy may help cover damage costs, medical costs and lawsuit expenses. Some businesses may also want to add liquor liability for more coverage.

Retail

Brick-and-mortar retail business owners in busy locations can also benefit from the legal protection commercial umbrella insurance can provide in the event of a customer injury.

Cleaning businesses

Business umbrella insurance can protect commercial and residential cleaning services from financial losses if they accidentally break or damage property on the job.

How much does Commercial Umbrella insurance cost?

The cost of a small business umbrella insurance policy at NEXT can be as little as $20 per month, and for many policyholders it does not exceed $40 per month.

You can choose either $1 million or $2 million of coverage and adjust your limit to meet your needs.

Note: You must have a NEXT general liability policy in good standing to add commercial umbrella insurance.

Several factors influence the price you’ll pay for commercial umbrella insurance, including:

• Your industry

• Your business operations

• The size of your business

• The state where you do business

• Your business needs and how much coverage you want to purchase

• Policy limits

The cost of a small business umbrella insurance policy at NEXT can be as little as $20 per month, and for many policyholders it does not exceed $40 per month.

You can choose either $1 million or $2 million of coverage and adjust your limit to meet your needs.

Note: You must have a NEXT general liability policy in good standing to add commercial umbrella insurance.

Several factors influence the price you’ll pay for commercial umbrella insurance, including:

• Your industry
• Your business operations
• The size of your business
• The state where you do business
• Your business needs and how much coverage you want to purchase
• Policy limits

You can purchase a commercial umbrella policy and get your certificate of insurance in less than 10 minutes online with NEXT.

You must have a NEXT existing general liability policy to add umbrella coverage. If you don’t, learn more about general liability insurance and sign up for both.

If you already have a NEXT general liability policy, you can add a commercial umbrella policy in minutes.

• Log in to the NEXT Customer Portal.

• Select Edit/Add Coverage.

• Under the Additional coverages menu, find Umbrella Liability and select $1 million or $2 million to see your monthly cost.

• If you like what you see, select Looks Good and confirm your coverage.

If you’re new to NEXT, you must first get a quote on a general liability policy to secure a policy for your small business.

• We’ll ask you some basic questions about your business and operations, such as your location, industry, size and claims history. You will have the option to add Umbrella Liability coverage after these basic questions.

• After that, you’ll have a customized quote for your general liability policy and other recommended coverage.

• If you like what you see, adjust the package limits and purchase your policy. Your general liability coverage will begin immediately after payment and you’ll have access to your certificate of insurance.

• If you decide to add Umbrella Liability after purchasing your General Liability policy, log in to the NEXT Customer Portal.

• Select Edit/Add Coverage.

• Under the Additional coverages menu, find Umbrella Liability and select $1 million or $2 million to see your monthly cost.

• If you like what you see, select Looks Good and confirm your coverage.

A business umbrella policy can provide important financial protection for your business, but it usually doesn’t protect from all the risks a small business can face.

Other business insurance options to consider for your risk management plan include:

Professional liability insurance that can help protect your business from losses after a professional mistake.

Most states require workers’ compensation if you have employees. It can help cover medical expenses and lost wages after an employee’s workplace accident.

Commercial property insurance can help pay for replacement or repairs for your business property.

Depending on your industry, you might also benefit from product liability insurance (retail) or liquor liability insurance (food service).

If you still have questions, our licensed insurance advisors are standing by to help.

Does Commercial Umbrella insurance cover property damage?

A business umbrella policy can cover expenses related to property damage, but only for property that does not belong to you.

Commercial property insurance can help protect the physical items you need to operate your business, such as:

• Inventory

• Business equipment

• Furniture and furnishings

• Physical structures

Does Commercial Umbrella insurance cover automobile liability?

NEXT business umbrella insurance does not cover automobile liability or any expenses related to business or personal driving.

Commercial auto insurance can help cover expenses If you drive for business reasons, such as:

• Injuries if you’re responsible for an accident

• Property damage to other people’s property

• Repairs for your vehicle

• Towing and rentals if your vehicle is damaged

Does Commercial Umbrella insurance cover theft?

Small business umbrella insurance doesn’t cover the theft of your own possessions. But it might cover the theft of customer property.

Let’s say you’re repairing a garage door for a homeowner and someone steals her car while you’re working. An umbrella insurance policy could help pay if you’re found liable for the loss.

If any of your personal or business items are stolen, you won’t be covered without additional insurance.

Businesses like contractors or a cleaning business might consider tools & equipment insurance to help protect your belongings if they’re damaged or stolen on the job.

Does Commercial Umbrella insurance cover employee injuries?

Business umbrella insurance can help pay for expenses if your business is accused of causing an injury, but injuries to you or your employee are not included.

Workers’ compensation insurance can help pay for medical expenses and lost wages if an employee is hurt on the job.

Many states legally require you to purchase workers’ comp as soon as you hire an employee. Business owners can also be covered if they get hurt on the job if they purchase optional business owner’s coverage.

Is Commercial Umbrella insurance tax deductible?

Umbrella insurance premiums can typically be deducted from your taxes. It’s important to consult with a licensed accounting professional to make sure you qualify.

The IRS categorizes payments you make for this type of insurance to be both an “ordinary and necessary” business expense. Be sure to keep a file of how much you pay every year for your policy.

When will I get my Commercial Umbrella policy documents and proof of insurance?

With NEXT, it can take less than 10 minutes to purchase coverage. You’ll have instant access to policy documents and your certificate of insurance.

You can access your documents and COI 24/7 online or in the NEXT app for iPhone or Android.

Learn more about our digital certificate of insurance.

How do I make a claim with NEXT?

You can file a claim online or in the NEXT app for iPhone or Android.

You’ll be asked to share the details of what happened and to provide relevant photos and documentation.

We strive to make claims decisions within 48 hours so you can get back to focusing on your work. The specific details of the claim, how bad the damage is, how many people are involved, the availability of information and other factors all contribute to the decision process.