Carpentry contractors, who work on wooden structures or parts thereof, should always carry carpentry insurance. These carpenters can be primary on a job, or they can be subcontractors brought in from elsewhere. Carpenters come in all varieties and levels of skill. Some conduct engineering and design; others work from pre-submitted plans. There are rough carpenters, finish carpenters and framing carpenters. All should carry a solid insurance policy.
Most contractors are aware of the need for Commercial General Liability, Workers’ Compensation and Business Auto Policies. One policy often omitted from a contractor’s insurance program is the Commercial Umbrella Policy. Just like your umbrella will save you on a stormy day, a Commercial Umbrella Policy will save you when disaster strikes.
Stay Safe from the Storm With Help from a Commercial Umbrella Policy
The Commercial Umbrella provides additional limits of coverage in the event of a catastrophic claim. For example, most Business Auto Policies provide no more than $1,000,000 of liability coverage. An accident involving several injured people or extensive property damage could total much more than $1,000,000. A Commercial Umbrella can be written to provide excess Business Auto liability coverage, which would respond to a claim in excess of $1,000,000.
The Commercial Umbrella Policy also helps in situations where a policy’s aggregate limit is reduced or depleted. It is common, for example, for a Commercial General Liability Policy to be written with a limit of $1,000,000 each occurrence and a $2,000,000 general aggregate. If a contractor has two $1,000,000 claims during the policy term, the aggregate limit is depleted, and there is no coverage available for future claims. Although, if there is an Umbrella, it will drop down and stand in place of the Commercial General Liability Policy should there be a third claim.
In some cases, a Commercial Umbrella Policy may even provide broader coverage than the underlying Commercial General Liability or Business Auto Policy. Some Umbrellas have worldwide coverage territories, while most other policies do not. Whether this broadened coverage feature applies to a given claim depends on the specific language in the underlying and Commercial Umbrella policies (so make sure you understand the ins-and-outs of your policy). On top of providing more comprehensive coverage than your CGL, rates for a Commercial Umbrella Policy are typically much lower than that of the underlying liability coverages (which is great because more and more projects now require an umbrella policy).
If you do not currently have an umbrella, be sure to discuss this valuable coverage with your insurance advisor and request a quote. You may be pleasantly surprised at just how affordable this extra peace of mind can be. Please feel free to contact us at 1-800-649-9094 if you have any further questions.