WHAT IS AN UMBRELLA POLICY?
A Commercial Umbrella Policy is designed to provide protection against catastrophic losses and is written over various primary liability policies, such as the commercial general liability (CGL) policy sold by the RWC Insurance Advantage.
The umbrella policy serves three purposes:
- It provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims.
- It drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims.
- It may provide protection against some claims not covered by the underlying policies, subject to a self-insured retention.
WHAT IS AN EXCESS LIABILITY POLICY?
An excess liability policy is designed to provide limits in excess of an underlying liability policy. It is no broader than the underlying liability policy; its sole purpose is to provide additional limits of insurance.
HOW DO I KNOW IF I NEED THIS ADDITIONAL COVERAGE?
Consider the net worth of your business. If your general liability limit is the standard $1 million
for each occurrence, is that enough to protect all your business assets? Let’s say you build a custom home worth close to $3 million. Not long after the home owner moves in, there is a catastrophic fire starting with a negligently installed overheating water pump. The multi-million dollar home is a total loss. $2.8 million to be exact! Your electrician’s liability limit, also $1 million, is quickly used up and now your $1 million is gone too, leaving you exposed for the balance of the loss - $800,000!
Even if you never plan to build multi-million dollar custom homes, you could still need an umbrella or excess policy. Some questions to think about include:
- Do your total business assets exceed $1,000,000?
- Do you allow customers, or prospective buyers to visit your jobsites after hours?
- Do any of your employees operate company vehicles, or their own, while on company time?
- Do you sponsor sporting events or little leagues?
- Do you invite the public to company events like open house parties?
WHAT CAN THE RWC INSURANCE ADVANTAGE DO FOR ME?
The RWC Insurance Advantage has partnered with the McGowan Group of Companies to offer umbrella and excess liability coverage to our insureds.
Limits up to $5 million are available in the following states in which your business is located and/or operates:
- Up to $5 million in Arkansas, Connecticut, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Wisconsin and Wyoming.
In some states only $1 million over our underlying general liability limit is available.
- $1,000,000 in Alabama, Michigan, New York, North Carolina and South Carolina.
DO I QUALIFY FOR UMBRELLA OR EXCESS COVERAGE?
Our Umbrella / Excess Liability program, underwritten by the McGowan Companies, is available exclusively to members of RWC Warranty Company, LLC who are insured for General Liability by the RWC Insurance Advantage. If you have any questions, please contact us. Otherwise, apply now to get started.