Commercial umbrella insurance is insurance that provides liability coverage over and above the limits of your existing policies. It’s not a legal requirement, but the benefits of having it are substantial.
Commercial umbrella insurance in action
Commercial umbrella insurance can help protect your New York or New Jersey condo, co-op or apartment building in a range of scenarios. Below are two examples of real life scenarios (pulled from data provided by LexisNexis) where commercial umbrella insurance coverage was needed.
- A man suffered severe burns from hot water as a child when his landlord failed to install a proper hot water system. He was awarded $9,469,609.
- A man suffered severe head injuries following being assaulted in the lobby of his building by alleged negligent security. He was awarded $2,300,000.
Why your New York or New Jersey condo, co-op or apartment building needs commercial umbrella insurance
Commercial umbrella insurance covers catastrophic situations where liability claims exceed the limits of your existing policies.
If, for example, you have a $1 million liability limit on your General Liability Insurance and a $10 million liability limit on your Commercial Umbrella Insurance, your General Liability insurer will cover the first $1 million of a claim and your Commercial Umbrella insurer will cover an additional $10 million.
Without commercial umbrella insurance, you’d have to use your company or personal assets to cover legal fees or judgments that exceed your policy limits.
Coverage limits available
Commercial umbrella limits typically range from $5 million to $200 million. The amount of coverage you require depends on several factors, including the nature of your business, the value of your real estate investments and the liability limits on any underlying Liability policies.
Types of real estate properties that should have a commercial umbrella policy
Commercial umbrella insurance is designed to protect the following types of real estate investments:
- Apartment buildings
- Cooperatives and condominiums
- Commercial and office buildings
- Garden apartment complexes
- Homeowners associations
- Student housing
- Senior housing
Your existing insurance policies will go a long way towards protecting you against most liability judgments, but when unexpected catastrophes arise, a commercial umbrella insurance policy will help ensure your condo, co-op or apartment building isn’t affected by high-value claims.
To find out more about how commercial umbrella insurance could help you protect your New York or New Jersey condo, co-op or apartment building, please contact one of our underwriters today.