Every business runs the risk of getting sued. Whether you're a small taco shack or an aerospace company in South Carolina, an injury or property damage can result in a massive insurance claim that can cause your business to go bankrupt if the claim exceeds your South Carolina business insurance policy limits. For South Carolina business owners, an umbrella policy could be what saves you from going bankrupt from an insurance claim.

Umbrella insurance policies step in when a claim exceeds the limits of your standard insurance policies. It can be difficult to determine whether your business needs an umbrella policy, which is why it's best to work with a South Carolina independent insurance agent. They know the ins and outs of umbrella insurance and will spend time learning about your business and helping you find the best umbrella policy to protect you.

What Is Umbrella Insurance for Businesses in South Carolina?

Umbrella insurance for businesses, also known as commercial umbrella insurance, is an extra layer of protection should your business get sued or face another costly liability insurance claim that runs your other liability policies past their limits. Umbrella policies are purchased separately from other liability policies but provide excess limits above the other policies you hold. If an employee causes an accident while operating your company vehicle and someone sues you for $200,000 of medical bills, but your auto policy only covers $150,000, commercial umbrella insurance will step in to cover the remaining costs.

What Does Business Umbrella Insurance Cover in South Carolina?

Your business umbrella policy in South Carolina stacks on top of your existing liability coverages that would cover large legal or medical expenses from claims brought against your business. The most common policies it provides excess coverage for are commercial liability, auto liability, and professional liability. The three main ways that a business umbrella policy can protect you are:

• Excess coverage for commercial liability claims: Your commercial liability policy will pay for legal fees, medical bills, settlements and judgments that you might have to pay if you are sued by a customer or employer for an injury or property damage that occurs on your property or as a result of your business. If your commercial liability policy comes with a $500,000 liability limit and you purchase an umbrella policy with a $1 million limit, this means that you are covered for up to $1.5 million in charges. If you encounter an incident that exceeds your $500,000 limit, your umbrella policy steps in for an additional $1 million.
• Excess coverage for auto liability claims:  An auto liability policy covers any legal fees, medical bills, settlements, and judgments that you might incur from an accident involving a company vehicle where a third party is injured or their property is damaged and they sue your company for the damages. Just as with commercial liability, if the claim exceeds your auto liability policy, the umbrella policy is there to cover the difference. 
• Excess coverage for professional liability claims: An important liability policy for businesses in South Carolina is professional liability. It is designed for business owners who advise, treat, or diagnose clients. If you're a doctor and you perform surgery, and three weeks later the patient gets an infection and has to return to the hospital, resulting in excessive medical bills, they could sue you for malpractice. Umbrella policies are extremely important for businesses that qualify for professional liability insurance. 

Typical legal fees per hour

• Average cost attorney fee for general liability: $218/hour
• Average cost attorney fee for auto liability: $196/hour
• Average cost attorney fee for malpractice liability: $472/hour

What Doesn't Business Umbrella Insurance Cover in South Carolina?

Any intentional acts or criminal acts will not be covered by a business umbrella policy. If you purposely set your business on fire and an employee is injured in the process, the umbrella policy will not cover any claims related to the injury. The same goes if you have an employee operating a company vehicle and they decide to break into a house while on the job. If they're injured breaking into the house, they cannot sue your business to pay for the medical bills associated with the injury. An independent insurance agent can help you understand exactly what an umbrella policy will cover, but it's safe to assume that it will not cover anything that isn't already covered by your underlying policies. 

South Carolina Commercial General Liability Insurance vs. Umbrella Policy 

The easiest way to keep your commercial general liability insurance and umbrella policy straight is to remember that they are not separate policies. The umbrella policy is simply an extension that stacks on top of your commercial general liability policy.

• Commercial general liability (CGL): Protects business owners against liability claims for bodily injury, property damage, slander and false advertising. Your CGL will pay for legal costs, medical bills, third-party property damage, settlements and judgments up to your CGL policy limits. 
• Business umbrella policy: Also protects business owners against liability claims for bodily injury, property damage, slander and false advertising at an amount that exceeds the underlying commercial general liability amount. You must have a CGL policy in order to qualify for an umbrella policy.

What Is Small Business Umbrella Insurance in South Carolina?

It's unlikely that a small business would get sued for $10 million dollars, but that doesn't mean that small businesses in South Carolina can't benefit from an umbrella policy. It's important to sit down with your independent insurance agent and determine the amount of risk that your business faces. While a hair salon might not be at risk of being sued for $1 million if a client slips and falls in the salon, a small local delivery business could be looking at high expenses if the delivery driver crashes into someone's car or house, causing serious property damage. 

Many small businesses create an LLC, or limited liability corporation. While an LLC protects your professional assets, it doesn't necessarily protect your personal assets. An umbrella insurance policy can serve as additional limited liability insurance for small businesses to ensure that you have full protection for your professional and personal assets. 

Commercial Umbrella Insurance Quotes in South Carolina

Finding a quality and affordable umbrella insurance quote can be stressful for a business. It can be difficult to know how much umbrella insurance to buy and where you might need the extra coverage.

The cost of an umbrella policy will vary greatly depending on the size of your business, your risks, and how large an umbrella policy you need. An independent insurance agent can help you shop umbrella insurance quotes in South Carolina. They'll know which companies offer the best rates and will coincide best with your existing policies.

Why Work with a South Carolina Independent Insurance Agent?

South Carolina independent insurance agents are experts in the field of insurance across the state. They know the ins and outs of the different insurance companies and know the right questions to ask you and an insurance company to make sure you're getting the best umbrella policy for your business. 

They're not just there in the beginning either. If disaster strikes your business, your independent insurance agent can play the middleman between you and your insurance company to make sure you're getting the most out of your insurance and utilizing your policies to their maximum.