What Umbrella and Excess Insurance Usually Covers
- Revenue. This is the income your business would have earned during the closure period if it were operating normally.
- Rent or lease payments. Many leases require the renter to continue making payments even if the premises become unusable. Most also exclude renters from any insurance a landlord has, so you need to rely on your own coverage.
- Relocation. This is the expense of moving your business to a temporary location and may include both moving and rent costs.
- Employee wages. This is essential if you don’t want to lose employees while you’re shut down. Your coverage can help you make payroll when you’re unable to operate.
- Taxes. The taxman doesn’t stop collecting, even when disaster hits. This can help you pay your taxes on time.
- Loan payments. Loan payments are often due monthly, so your coverage can help you make those payments even when you can’t generate income.
- Losses caused by covered damage that prevents access to a building. For example, this coverage can help out when the government implements a citywide curfew or other restrictions that keep people away from your business. This is usually called “civil authority coverage” or “loss of ingress or egress.”
Did You Know?
There is no standardized form for Commercial Umbrella policies, which means that each insurance company creates their own umbrella policy form and decides the specifics of it.
What Umbrella and Excess Insurance Usually Does Not Cover
- Malpractice lawsuits.
- Professional liability lawsuits.
- Employee discrimination lawsuits.
- Property damage.