Business-owner Works Assured knowing he has the added protection of business umbrella insurance
Today, lawsuits are occurring with alarming frequency, and monetary awards can be staggering. Your current insurance will protect your company against routine misfortunes – but it may not give you the full protection you need.

A commercial umbrella insurance policy* protects your company against excess liability judgments for loss, injury or even death. It’s designed to provide protection over and above your current insurance policies, including general liability or business-owner's insurance.

Talk with your independent agent about the liability and insurance needs of your business, so you can determine the right coverage for you, and whether it makes sense to have the added protection and benefits that come with a commercial umbrella policy for your business.



When thinking about whether or not you need a commercial umbrella insurance policy for your business, consider the feasibility of one of these actual scenarios occurring involving your business:

  • A tenant suffered burns to 60% of his body when the gas fireplace exploded in the apartment he leased from the defendants.  Plaintiff Verdict$3,290,101

  • Plaintiff electrician came into contact with a live wire at a construction site and suffered traumatic brain injury, determined to be the result of the electrical contractor's negligence.  Settlement$2,900,000

  • An 11-year old died from an auto accident at a controlled intersection going into a neighborhood constructed by the defendant development company.  Plaintiff Verdict:$10,000,000

  •  Defendant pharmacy incorrectly filled a low-dose steroid prescription with a higher dose, resulting in diabetes, glaucoma and other serious injuries to a 43-year old.  Plaintiff Verdict:  $2,700,000

  • A deliveryman suffered herniated discs requiring surgery and continuing medical treatment when he slipped and fell down the stairs of the defendant restaurant.  Plaintiff Verdict:  $1,763,000


​Related Policies:

Business Owner's Program

A Business Owner’s Policy (BOP) bundles the coverages most business owners need, including business interruption insurance, property insurance, liability insurance, and crime insurance. Based on your company’s specific needs, you can alter what is included. Typically, a business owner will save money by choosing a BOP over purchasing individual coverages.

Our BOP will provide you with comprehensive coverage for your building and/or business property, business income coverage, and comprehensive general liability coverage, all of which can grow with your needs.

Extensive optional coverage is also available, including Equipment Breakdown or Non-Owned and Hired automobile coverages.  These are options that your independent agent may recommend.

Commercial Package Policy

The Commercial Package Policy (CPP) provides tailored and flexible products that can include coverage for property, liability, crime and valuables when you need customized and optional coverages with variable limits.

CPP can include:

  • Commercial Property Insurance  Provides protection for your building and its contents from fire, vandalism, theft or smoke damage. You may also want to consider business interruption/loss of earning coverage to protect your earnings if your business is unable to resume normal activities as a result of a covered loss.
  • Commercial General Liability Insurance — Provides your company with liability protection for you, your employees or your products and services. Protection includes coverage for both your legal liability and defense costs associated with defending you against claims.
  • Commercial Crime Insurance  Provides protection against theft of business property and money. Coverage can also extend to include protection against employee theft.
  • Equipment Breakdown Insurance  Provides protection for electrical, air conditioning, refrigeration, boiler/pressure vessel and communication equipment from physical damage caused by mechanical and/or electrical breakdowns. This provides your business with protection should equipment breakdown affect your operations.
  • Business Income and Extra Expense Insurance  Provides protection for loss of business income sustained up to 12 months due to a covered loss. Coverage can also be extended to provide coverage for food contamination. Extra Expense coverage provides for additional expenses incurred to reduce the length of your business’s interruption or to enable your business to continue some operations despite your losses. This insurance can help restore your business to the financial position you would have been in had no loss occurred.
  • Electronic Data and Interruption of Computer Operations Insurance Provides protection if your business stores sensitive or non-public information about employees or clients on their computers, servers or in paper files and a data breach occurs either electronically or from a paper file.
  • Commercial Inland Marine  Provides protection for property away from premises, including offsite equipment, valuables, property that is in transit, or valuables that require separate insurance, such as valuable papers, camera floaters, customer goods, tool floaters, fine arts, and musical instruments.
Commercial Auto Insurance

Commercial Auto insurance protects your business against claims for legal liability should one of your vehicles be involved in an accident.  Protection can be extended to provide coverage for damages to those vehicles that you own or are operated by your business. With Commercial Auto insurance, you can protect your vehicles that carry employees, products or equipment. Optional additional Commercial Auto coverage can include:

  • Drive other car coverage
  • Hired and non-owned auto
  • Spousal liability
  • Rental reimbursement coverage
  • Towing
  • Inland Marine
Commercial Umbrella Insurance
Annually in the U.S., hundreds of verdicts in excess of $1 million are awarded.  A Commercial Umbrella Policy can provide you with an additional layer of protection, beyond what your regular policies cover. Generally, it is sold in increments of $1 million and is used only when liability on other policies has been exhausted. Preferred Mutual is able to provide limits up to $5 million over your primary policy (Commercial General Liability, Commercial Auto, or Employer’s Liability).
Worker's Compensation Insurance

Workers’ Compensation Insurance provides insurance to employees who are injured on the job. This type of insurance provides wage replacement and medical benefits to those who are injured while working. In exchange for these benefits, the employee gives up his rights to sue his employer for the incident. State laws will vary, but all require you to have workers’ compensation if you have W-2 employees.

Preferred Mutual offers Workers’ Compensation Insurance through our partner, the MEMIC Group.

Professional Liability Insurance (Errors & Omissions)
This type of insurance provides coverage for both damages and legal costs associated with claims for failure to or improperly rendering professional services. Your general liability policy does not provide this protection, so it is important to understand the difference. Professional liability insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers, to name a few. If you require a license to perform your job, you may require Professional Liability Insurance.
Insurance Extension Endorsements

A variety of add-ons are available through Preferred Mutual, depending on your business needs. These can include:

  • Accounts receivable
  • Broadened premises
  • Business income from dependent properties
  • Business personal property
  • Crime
  • Debris removal
  • Employee dishonesty
  • Extended business income
  • Fine arts coverage
  • Fire department service charge
  • Fire equipment
  • Forgery or alteration
  • Host liquor
  • Identity fraud expense coverage
  • Inland Marine
  • Laptop computers
  • Lock/key replacement
  • Money orders and counterfeit money
  • Newly acquired or constructed property
  • Ordinance or law coverage
  • Outdoor property
  • Outdoor signs
  • Personal effects and property of others
  • Pollutant cleanup and removal
  • Sewer, drain or sump backup or overflow
  • Spoilage/food contamination
  • Utility services — direct damage and time element
  • Valuable papers and records

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