New Jersey, NJ Commercial Excess Liability Insurance (Umbrella)
COMMERCIAL EXCESS LIABILITY, also known as an UMBRELLA extends the limits of the underlying policies. The maximum most insurance companies write for general liability and commercial auto policies is 1 million dollars. If higher limits are needed an umbrella or excess liability policy is commonly written. Limits up to 10 million dollars are common. Contact us if you are interested.
Example 1: A contractor has a large project working in a building worth 6 million dollars. If the contractor carries 1 million limits on his general liability policy the insurance company will only pay out that limit. If a large claim were to occur the contractor would be liable for the 5 million balance to rebuild the structure. The contractor will probably have to go into bankruptcy due to the claim. An umbrella with the property limits will provide the proper protection. Even if the building owner does not require the higher limits, the contractor should purchase the proper limits for the protection it affords.
Example 2: An employee driving a commercial vehicle causes an auto accident causing severe injuries to many people in a bus or hits several cars. They all sue for their injuries. Most likely the limits on the commercial auto policy would be insufficient. An umbrella will provide protection from the resulting lawsuit.
If you need higher limits, give us a call. 973-377-6100