Commercial Insurance

$1 Million Doesn't Go As Far As It Used To

Umbrella Coverage

One million dollars doesn’t provide as much protection as it used to. Are you  adequately covered when an unexpected loss occurs? Are you being offered an umbrella quote? Even a small business can be exposed to a catastrophic event from an auto or a GL loss. At Selective, our umbrella policy can provide you with greater protection at a reasonable cost. 

Limits and Coverages

Should that large car accident or product/completed operations claim occur, don’t jeopardize your business by providing only $1 million in coverage. Selective’s umbrella policy offers broad coverages and may provide up to $25M in limits. Some of the coverages available include:

  • Automatic coverage for additional insureds
  • Expanded coverage territory
  • Extension of the designated location and designated aggregate per project into the umbrella
  • Primary and non-contributory coverage available
  • Coverage available above your professional liability coverages

Easy to Quote

Selective has the ability to provide you the protection you need. In our One & Done® system, just select an umbrella and the limit; the system automatically generates a competitive quote and allows your insurance agency to bind and issue coverage up to $5 million. If you want higher limits, talk to your agent so they can meet your individual needs.

General Liability and Adequately Insured Subcontractors

Our premium auditors often get the question, “Why do we charge for subcontractors?” The answer is simple: contractors who hire subcontractors are exposed to vicarious liability and could have claims brought against them as a result. The premium charged for adequately insured subcontractors helps offset the costs of defense and judgments that may be brought against the hiring contractor. These could include subcontractors’ torts, negligence or inadequate limits of insurance. 

The basis of premium charged for adequately insured subcontractors is “total cost.” By definition, total cost includes all labor, materials and equipment furnished, used or delivered for use in the execution of the work. However, it does not include the cost of furnished equipment installed but not furnished by the subcontractor, if the subcontractor does no other work on or in connection with such equipment. Total cost also includes all fees, bonuses or commissions made, paid or due. 

By definition alone, this is a more complicated topic than it would appear on the surface. Many insureds are confused by the inclusion of materials in their premium charge. However, it is important that your clients include the proper costs at the time the policy is written to help avoid problems at time of audit.