In this scenario, assume your costs and legal fees came to $3 million dollars, which is unfortunately not unreasonable given the high costs of medical expenses, hospitalization costs, attorney fees and legal settlements. If you had $1 million worth of commercial liability insurance and $5 million worth of business umbrella insurance, your liability coverage would protect you as follows:
- Your business liability would pay the first $1 million of the liability claim.
- Your business umbrella liability policy, also known as “excess liability” would kick in after your commercial liability coverage to pay the remaining $2 million.
Source: Trusted Choice