The purpose of a Commercial Umbrella policy, which is also known as a Business Catastrophic Liability (BCL) policy, is to provide your business with additional liability coverage above what your General Liability, Commercial Auto, and Workers Compensation insurance policies already provide. The liability coverage provided by a BCL policy is triggered when your underlying liability limits (General Liability, Commercial Auto, and Workers Comp) have been exhausted.
Another benefit of a BCL policy, it provides further assurances that your defense cost will be paid for by the insurance company. When your liability limits have been reached, the insurance company may no longer pay for your defense cost. With a BCL policy in place, the insurance company will continue to pay for your defense cost until the BCL policy limit has been reached.
A BCL policy provides coverage for Bodily Injury and Property Damage claims that may occur on your property, away from your property, or due to an auto accident. Unfortunately, million-dollar lawsuits are becoming more common. The BCL policy is meant to help protect you from large and potentially devastating liability claims or judgments. If you have a BCL policy, it becomes less likely that a large liability lawsuit could jeopardize the assets and financial security of your business.
As a business owner, here are some items to consider, when deciding if you need to add BCL policy to your Business Insurance program;
Are you a contractor who may work in homes or buildings that would cost more than $1,000,000 to rebuild?
Do you have a large fleet of vehicles?
Do you manufacture a product?
Do your employees drive their own vehicles for company purposes
If the answer to any of these questions is yes, then you may want to consider adding a BCL policy to your business insurance plan.
To learn more about a Commercial Umbrella Policy (BCL), please give Mitros Insurance a call at 610-296-2600.