A monoline commercial umbrella insurance is a type of policy that provides financial protection with extra liability coverage limits for your primary business insurance policies in addition to covering some exposure gaps in those policies for a wide range of risks.
It is typically used to provide coverage for businesses and professionals that face a high risk of liability claims. Commercial Umbrella Insurance can also provide additional liability limits for risks that are not typically covered by standard insurance policies, such as personal injury or property damage.
1. What is a monoline umbrella insurance policy?
2. What are the benefits of having a monoline umbrella insurance policy?
3. How can you get a monoline umbrella insurance policy?
4. What are some of the risks that are covered by a monoline umbrella insurance policy?
5. How much does a monoline umbrella insurance policy cost?
What is a monoline umbrella insurance policy?
A monoline umbrella policy is a type of insurance policy that provides excess liability insurance that can add comprehensive coverage for a wide range of risks not covered by the primary liability coverage. It is typically used to provide an additional layer of coverage for businesses and professionals that face a high risk of liability claims.
Monoline Commercial umbrella insurance policies are becoming increasingly popular as businesses and business partners face an ever-growing range of risks that their standard insurance company is not comfortable with. The comprehensive coverage provided by these policies can give policyholders peace of mind, knowing that they are protected against a wide variety of potential liabilities.
The amount of coverage you need will depend on the amount of risk you are exposed to. Generally, the more risk you have, the higher the limit you will need.
Commercial umbrella insurance policies typically have liability limits of $1 million or $2 million, but higher limits are available depending on the business activities.
Monoline umbrella policies can be a great way to get extra protection for your business if your general liability insurance company doesn’t offer a commercial umbrella policy or if you don’t meet the underwriting guidelines needed to qualify.
Be sure to work with an independent insurance agent or broker, like your friends at Beacon Point Insurance, to find a small business policy for your needs.
Two types of monoline umbrella insurance policies
There are two types of monoline umbrella insurance policies: admitted and non-admitted.
Admitted Commercial Umbrella Insurance Policy
Admitted carriers are licensed by the state in which they operate, and their rates and forms are subject to regulation.
Non-admitted Commercial Umbrella Insurance Policy
Non-admitted carriers are not licensed by the state but can still provide coverage for risks that may be excluded from an admitted carrier’s policy.
Benefits to having a monoline umbrella Insurance policy
- broader coverage than standard insurance policies
- additional protection against risks that are not typically covered
- peace of mind knowing that you are fully protected against any potential liability claims.
How can you get a monoline umbrella Insurance policy?
To qualify for a monoline umbrella policy you must first have proper underlying insurance in place. This typically includes commercial general liability insurance but can also include other types of coverage such as business auto insurance and workers’ compensation as an example of the most common policies.
What are some of the risks that are covered by a monoline umbrella insurance policy?
A monoline umbrella insurance policy can cover the claim amount that is in excess of the underlying policy limit, up to the limits of the umbrella policy itself as well as some areas potentially not covered by the underlying policies such as:
- Coverage Territory – many have worldwide coverage
- Aircraft – may provide coverage for non-owned aircraft chartered with a crew.
- Watercraft – may provide coverage for non-owned watercraft over 26 feet
- Additional Insureds – may provide coverage for newly acquired entities, prior entities, subsidiaries, and holding companies.
- Professional liability if provided by endorsement.
How much does a monoline umbrella insurance policy cost?
The price of umbrella insurance is determined by how much coverage you choose. Businesses in sectors that are especially susceptible to risks may require larger policy limits than those with limited liability.
In general, companies in high-risk industries tend to purchase more umbrella coverage than those in low-risk industries. And the higher the risk the higher the cost.
For example, building design professionals pay a median of $1,600 annually for a one million umbrella insurance policy, whereas personal care professionals pay a median premium of $480 per year (only $40 per month).
The following factors can increase the cost of umbrella liability insurance:
- Because your business serves the public and receives a lot of foot traffic, it raises the likelihood of a lawsuit against your general liability coverage.
- You’re frequently in charge of client property, putting you at risk of a property damage lawsuit.
- You own a fleet of heavily traveled commercial vehicles, raising the likelihood of an automobile liability claim.
- Your business deals with hazardous work that puts your employees and you at risk of bodily harm and lawsuits.
With that being said, the first $1 Million in coverage will be the most expensive because it has the highest likelihood of being tapped into, the second million might be a little less than the first, and as you stack an additional $1 million in coverage, the price per million typically gets reduced. It’s like buying at a wholesale club, the more you buy the cheaper it gets overall.
Tips for saving money on umbrella insurance
Monoline Umbrella insurance costs will differ depending on a number of criteria. These suggestions might assist you in keeping expenses down:
Pay in full for your entire premium.
You may usually pay your premium in monthly or annual installments. It might be tempting to settle for a smaller monthly payment but consider paying the whole amount instead. Many insurers provide yearly premiums at a discount.
Manage your risks proactively.
Fewer claims result in decreased insurance rates, so having umbrella insurance covers you against liability concerns across many policies. To avoid making claims, business owners may develop a comprehensive risk management strategy. For example, you might:
- Develop a comprehensive training program for your staff.
- Invest in a security system if you don’t already have one.
- Set social media posting rules
- Create checklists and reviews for procedures.
- Reduce the risks on your organization’s premises.
- To avoid claims on your auto liability, you should limit who is allowed to drive business motor vehicles.
Contact Beacon Point Insurance for help with your Monoline Umbrella Policy
No one ever thinks they are going to get sued, but it does happen, and a monoline umbrella policy is an ideal way to protect your business or professional practice from any potential liability claims that may arise. If you are faced with a high risk of liability, then a monoline umbrella policy can provide the coverage you need to safeguard your assets and reputation.
Contact Beacon Point Insurance to learn more about how a monoline umbrella policy can benefit you.