Finding out what umbrella liability insurance covers can help businesses determine how it can help them take down potential risks. All businesses face various risks they must mitigate through insurance and other methods. Staffing companies face the unique risk of providing temporary employees to third parties. In most cases, these employees are well-vetted and pose no greater risk to companies than any other staff. However, accidents can happen.
Staffing Umbrella Liability Insurance
Staffing umbrella liability insurance exists to protect staffing companies when something goes wrong that other liability insurance policies cannot cover. Clients need to understand what this insurance covers and why it is essential.
What Is Umbrella Liability Insurance?
Staffing umbrella liability insurance provides excess coverage over your client’s other applicable liability insurance. Suppose an employee is driving a company car and causes an accident. Then, the damages from that accident exceed the company’s commercial auto liability policy. In that case, umbrella insurance may kick in to pay the damage that exceeds the limits of the commercial auto policy.
What Does Staffing Umbrella Liability Insurance Cover?
The exact coverages provided by umbrella liability insurance vary by policy. However, a standard policy typically covers liability due to several common causes of loss:
- Bodily injury
- Copyright infringement
- Property damage
- Libel or slander
- Defamation
In addition to providing excess coverage over general commercial, auto, and other liability policies, umbrella policies cover some causes of loss that the base policies may not cover. Staffing insurance policies are tailored to the specific risks that staffing companies face.
How Does Umbrella Liability Insurance Work?
When a client becomes legally liable to pay for damages to a third party, the client files a claim on the applicable base commercial liability policy. If the value of that claim exceeds the limits of that policy, then the umbrella policy covers the loss while paying the amount that exceeds the boundaries of the base policy.
Why Umbrella Liability Insurance Is Useful
Standard commercial liability policies provide coverage for typical risks. It protects clients from the risks that are most likely to occur. However, an unexpected liability due to a cause of loss not covered by standard insurance or a tremendous loss that exceeds policy limits can severely damage a company that does not have umbrella insurance.
Umbrella insurance ensures that an unusually large or unexpected liability does not threaten the client’s financial stability. Because other types of insurance pay for losses before an umbrella policy kicks in, this coverage may be more affordable than purchasing higher limits on a standard liability policy.
Umbrella liability insurance provides an extra layer of protection for your clients at an affordable price. Likewise, umbrella insurance is an excellent tool to ensure all of your clients’ risks gain coverage.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.