Umbrella Insurance for Commercial Property Owners – Do You Need It?

Umbrella Insurance for Commercial Property Owners – Do You Need It?

When you own commercial real estate—whether it’s a single building or a portfolio of properties—you’ve made a significant investment. Protecting that investment goes beyond just insuring the building itself. One of the smartest moves you can make is adding an umbrella insurance policy to your commercial insurance program.

What Is Umbrella Insurance?

Umbrella insurance is extra liability coverage that kicks in when the limits of your standard policies—such as general liability, workers compensation, or commercial auto insurance—are reached. Think of it as a safety net. If a major claim or lawsuit exceeds your primary coverage, your umbrella policy can cover the additional costs.

Also, for the amount of coverage umbrella insurance often provides, it is for a relatively affordable premium, making it a cost-effective way to protect your assets.

Why Commercial Property Owners Should Consider It

Lawsuits can escalate quickly, and even the most comprehensive primary policy may not be enough in a worst-case scenario. Without umbrella coverage, you could be left paying out of pocket—putting your finances and your business at risk.

Example: Imagine you own a strip mall or retail building. A customer of one of your tenants slips and falls in the parking lot. Medical bills, legal fees, and potential settlements could easily exceed your general liability limits. An umbrella policy would cover the excess, so you’re not stuck paying the difference yourself.

If you own multiple properties, you may also be able to extend one umbrella policy across all of them, simplifying your insurance program.

Additional Protection Beyond Property Risks

Umbrella insurance isn’t limited to injury or property damage claims—it can also cover other liability exposures, such as libel or slander claims. This broader protection helps safeguard your reputation as well as your finances.

Most policies also cover legal defense costs, which can add up quickly even if you’re not found liable in court.

The Bottom Line

Umbrella insurance gives you more than just extra coverage—it gives you peace of mind. For a relatively modest cost, you can protect your commercial property business from extreme, unexpected events that could otherwise be financially devastating.

If you’re a commercial property owner, now is the time to review your liability limits and consider whether an umbrella policy should be part of your coverage strategy.

📞 Need help reviewing your commercial property coverage? We’re here to help. Contact us today to make sure your business has the protection it needs.