Chapter 2: Understanding Cleaning and Janitorial Insurance Policies
Part 3: Essential Coverages for Maids, Janitors & Other Cleaning Professionals
Umbrella Liability Insurance
You can think of Umbrella Liability Insurance (aka Excess Liability Insurance) as a "supplement" to your other insurance policies. It doesn't offer any unique coverage on its own. Rather, it offers more protection when the limits of these liability policies are maxed out:
For one premium, Umbrella Liability coverage offers a cushion of extra liability protection that can be applied to three separate policies. The best part? It costs less to purchase Umbrella Insurance than it would to raise each policy's limits.
Here's how it works.
Let's say your client is suing your cleaning business for property damage to their marble floors. Your General Liability Insurance kicks in to cover the suit: roughly $350,000 in damages. But after an additional $200,000 in legal fees, your General Liability Insurance's limits ($500,000) have been reached and surpassed.
If you didn't have an Umbrella policy, you'd have to pay the remaining $50,000 out of pocket. With Umbrella Liability coverage, though, you'd have the funds you need to settle the claim without jeopardizing your own finances.
Next: Chapter 2.3.C: Janitorial Bonding Insurance / Employee Dishonesty Bonds
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