In Canada, most small and mid-size enterprises are covered for up to $2 million under their commercial general liability (CGL). A commercial Umbrella insurance (excess liability) provides an extra layer of protection by covering costs that go beyond your standard liability coverage limits. In other words, your commercial Umbrella insurance kicks in when your CGL policy taps out.
“We’re ok! We’ve got $2 million in liability insurance”
Are you really? While $2 million does sound like more than enough coverage, the costs related to a civil lawsuit could add up quickly depending on the severity of the incident and the damages suffered, not to mention grow exponentially if the incident happens in Ontario, British Columbia or in the US where lawsuits can easily exceed your primary GCL limit.
Here are some examples of unfortunate incidents that could escalate liability costs:
- A fire starts in your office and ends up destroying the rest of the commercial plaza and puts the other tenants out of business.
- One of your company’s vehicles hits a pedestrian and confines him to a wheelchair for life.
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A child swallows a piece of your product and suffers complications which eventually lead to cerebral damage.
When it rains, it pours
Should an incident result in a severe bodily injury or even death of an employee or third party, your Umbrella insurance policy will offer:
- An additional limit to your current CGL policies.
- The option to include other primary liability policies such as your CGL and business auto as the underlying policies.
- Provide coverage that may be excluded in your primary CGL policy.
- A premium per million that decreases as the excess liability policy limit increases.
Do you have an Umbrella policy?
Don’t put your organization’s future at risk for claims exceeding your liability policy. Contact one of our LMBF experts for a 15-minute call about Umbrella Insurance to your existing policy. You’ll be glad you did.
