How Does Umbrella Insurance Work With Other Insurance?

Businesses of all sizes face many risks that they need to mitigate as a survival strategy. America is one of the most litigious countries in the world. If you own a business, you are going to deal with lawsuits regularly. Virtually every business in America is involved in some form of litigation every year.

Small Businesses are More Vulnerable

For smaller businesses, this risk is so great that one major calamity may wipe them out. The challenging part of making sure the business and its owner have adequate insurance protection is determining what the potential risks are, to reduce or eliminate them.

Some risks are unknown and the amount of any potential claim is also unknown. One strategy to avoid risk is to carry plenty of insurance in all categories and have very high policy limits for claims. However, this is not a recommended strategy. There is a better way to achieve the same thing.

The Effectiveness of Umbrella Insurance

Umbrella insurance does two things, which are: 1) it extends the policy limits of underlying policies, and; 2) it covers some risks that do not have coverage by other insurance.

For example, a business may have general liability insurance, product liability insurance, and commercial vehicle insurance. It is more cost-effective to have an umbrella insurance policy that covers claims from all of those types of insurance that are higher amounts than the individual policy limits. Think of umbrella insurance as a backup of those other policies.

Moreover, umbrella insurance is customizable to fit the particular needs of a business. It can cover claims for defamation, cyber-security risk, harassment, and discrimination in the workplace. Work with your agent at Freeland Insurance, serving Oklahoma City, OK and the surrounding area, to get a complimentary and comprehensive commercial insurance review, along with recommendations for umbrella insurance.


Having adequate insurance coverage for the business is not something to put off because a sudden change of events can occur at any time. To get an insurance review and a quote, contact your agent at Freeland Insurance in Oklahoma City, OK.

Leave a Reply

Your email address will not be published. Required fields are marked *