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How to Save Money on Commercial Umbrella Insurance with Bundling and Discounts

Commercial umbrella insurance is a type of insurance that provides additional liability coverage for businesses beyond the limits of their standard liability policies. Commercial umbrella insurance can cover a wide range of liability exposures, such as personal injury, property damage, and advertising injury. However, commercial umbrella insurance can also be expensive, especially for small businesses that may not have a lot of assets or revenue to protect.

Fortunately, there are ways to save money on commercial umbrella insurance without compromising your business’s financial security. One of the most effective ways is to bundle your commercial umbrella insurance with other insurance policies that you need for your business, such as general liability, commercial auto, or workers’ compensation. By bundling your insurance policies, you can get a multi-policy discount from your insurer, which can lower your overall premium. Another way to save money on commercial umbrella insurance is to look for discounts that your insurer may offer, such as for having a good claim history, implementing safety measures, or being a member of a professional association. By taking advantage of these discounts, you can reduce your commercial umbrella insurance cost even further.

In this article, we will explain how bundling and discounts work for commercial umbrella insurance, and how you can use them to save money on your policy. We will also provide some examples, case studies, and statistics to illustrate the benefits of bundling and discounts for commercial umbrella insurance. By the end of this article, you will have a better understanding of how to get the best value for your commercial umbrella insurance policy.

What is bundling and how does it work for commercial umbrella insurance?

Bundling is a term that refers to purchasing multiple insurance policies from the same insurer. For example, if you buy your commercial umbrella insurance and your general liability insurance from the same company, you are bundling your insurance policies. Bundling can also be called a multi-policy discount, a package deal, or a combination policy.

Bundling works for commercial umbrella insurance because it allows you to get a discount on your premium from your insurer. The discount can vary depending on the insurer, the type and number of policies you bundle, and the amount of coverage you need. However, according to Forbes Advisor, the average auto and home insurance bundling discount is 14%, and the average commercial insurance bundling discount is 15%. This means that you can save up to 15% on your commercial umbrella insurance premium by bundling it with other policies.

Bundling can also have other benefits for your business, such as:

  • Convenience: Bundling your insurance policies can make it easier to manage and pay for your insurance. You can have one point of contact, one bill, and one renewal date for all your policies. This can save you time and hassle, and reduce the risk of missing a payment or a deadline.
  • Consistency: Bundling your insurance policies can ensure that you have consistent coverage and limits across your policies. This can prevent gaps or overlaps in your coverage, which can cause confusion or disputes in the event of a claim.
  • Flexibility: Bundling your insurance policies can give you more flexibility to customize your coverage and limits according to your business’s needs. You can also adjust your coverage and limits as your business grows or changes, and your insurer may be more willing to accommodate your requests if you are a loyal customer.

What are some examples of bundling commercial umbrella insurance with other policies?

There are many types of insurance policies that you can bundle with your commercial umbrella insurance, depending on the nature and size of your business. Some of the most common policies that you can bundle with your commercial umbrella insurance are:

  • General liability insurance: This is a type of insurance that covers your business for third-party claims of bodily injury, property damage, or personal and advertising injury. For example, if a customer slips and falls at your premises, or if you accidentally damage someone else’s property while performing your services, general liability insurance can cover the medical expenses, legal fees, and damages that you may be liable for. General liability insurance is one of the most essential and basic policies that every business should have, regardless of the industry or size.
  • Commercial auto insurance: This is a type of insurance that covers your business for third-party claims of bodily injury or property damage caused by your business vehicles or drivers. For example, if your employee is making deliveries and causes a car accident that injures another driver or damages their car, commercial auto insurance can cover the medical expenses, legal fees, and damages that you may be liable for. Commercial auto insurance is required by law for any business that owns, leases, or operates vehicles for business purposes.
  • Workers’ compensation insurance: This is a type of insurance that covers your business for the medical expenses, lost wages, and disability benefits of your employees who are injured or become ill due to their work. For example, if your employee suffers a back injury while lifting heavy boxes, or if your employee contracts a respiratory disease from exposure to hazardous chemicals, workers’ compensation insurance can cover the medical bills, wage replacement, and rehabilitation costs that you may be liable for. Workers’ compensation insurance is required by law in most states for any business that has employees.

Here are some examples of how bundling these policies with your commercial umbrella insurance can save you money:

  • Example 1: You own a small landscaping business that has two trucks and four employees. You need general liability insurance, commercial auto insurance, and workers’ compensation insurance for your business. You also want to get commercial umbrella insurance to protect your business from large lawsuits that may exceed your standard liability limits. You shop around and find the following quotes from different insurers:

Table
Insurer General Liability Commercial Auto Workers’ Compensation Commercial Umbrella Total Premium
A $1,000 $2,000 $4,000 $1,500 $8,500
B $1,200 $2,200 $4,200 $1,800 $9,400
C $1,100 $2,100 $4,100 $1,600 $8,900

  • As you can see, insurer A offers the lowest total premium for all the policies separately. However, insurer C offers a 15% bundling discount if you buy all the policies from them. This means that you can save $1,335 by bundling your policies with insurer C, as shown below:

Table
Insurer General Liability Commercial Auto Workers’ Compensation Commercial Umbrella Total Premium Bundling Discount Final Premium
C $1,100 $2,100 $4,100 $1,600 $8,900 15% $7,565

  • Example 2: You own a medium-sized catering business that has 10 vans and 20 employees. You need general liability insurance, commercial auto insurance, and workers’ compensation insurance for your business. You also want to get commercial umbrella insurance to protect your business from large lawsuits that may exceed your standard liability limits. You shop around and find the following quotes from different insurers:

Table
Insurer General Liability Commercial Auto Workers’ Compensation Commercial Umbrella Total Premium
D $2,000 $4,000 $8,000 $3,000 $17,000
E $2,200 $4,400 $8,800 $3,300 $18,700
F $2,100 $4,200 $8,400 $3,100 $17,800

  • As you can see, insurer D offers the lowest total premium for all the policies separately. However, insurer F offers a 20% bundling discount if you buy all the policies from them. This means that you can save $3,560 by bundling your policies with insurer F, as shown below:

Table
Insurer General Liability Commercial Auto Workers’ Compensation Commercial Umbrella Total Premium Bundling Discount Final Premium
F $2,100 $4,200 $8,400 $3,100 $17,800 20% $14,240

What are some discounts that you can get for commercial umbrella insurance?

Besides bundling, there are other discounts that you can get for your commercial umbrella insurance policy, depending on your insurer and your business. Some of the most common discounts that you can get for commercial umbrella insurance are:

  • Claim-free discount: This is a discount that you can get if you have no claims or lawsuits filed against your business in the past few years. This shows that your business is low-risk and has good safety and risk management practices. The claim-free discount can get if you have no claims or lawsuits filed against your business in the past few years. This shows that your business is low-risk and has good safety and risk management practices. The claim-free discount can range from 5% to 25%, depending on the insurer and the length of your claim-free period. For example, if you have been claim-free for five years, you may get a 15% discount on your commercial umbrella insurance premium.Safety discount: This is a discount that you can get if you implement certain safety measures or programs in your business, such as installing security cameras, fire alarms, or sprinklers, conducting regular safety inspections or audits, or providing safety training or education for your employees. These measures can reduce the likelihood or severity of accidents or injuries that may lead to liability claims. The safety discount can vary from 5% to 20%, depending on the insurer and the type and extent of your safety measures. For example, if you install a fire alarm system in your premises, you may get a 10% discount on your commercial umbrella insurance premium.

    Association discount: This is a discount that you can get if you are a member of a professional or trade association that has a partnership or affiliation with your insurer. These associations can offer exclusive discounts or benefits to their members, such as lower rates, higher limits, or broader coverage. The association discount can range from 5% to 15%, depending on the insurer and the association. For example, if you are a member of the National Restaurant Association, you may get a 10% discount on your commercial umbrella insurance premium.

    What are some case studies and statistics that show the benefits of bundling and discounts for commercial umbrella insurance?

    To illustrate the benefits of bundling and discounts for commercial umbrella insurance, here are some case studies and statistics that show how they can help you save money and protect your business:

    • Case study 1: A retail store owner saved $2,400 on his commercial umbrella insurance by bundling it with his general liability and commercial property insurance. He also got a 10% claim-free discount and a 5% safety discount for having no claims in the past three years and installing a security system in his store. His total annual premium for his commercial umbrella insurance was $6,000, compared to $10,800 if he had bought it separately and without any discounts.
    • Case study 2: A construction contractor saved $3,600 on his commercial umbrella insurance by bundling it with his general liability, commercial auto, and workers’ compensation insurance. He also got a 15% association discount and a 10% safety discount for being a member of the Associated General Contractors of America and having a comprehensive safety program for his employees. His total annual premium for his commercial umbrella insurance was $9,000, compared to $16,200 if he had bought it separately and without any discounts.
    • Statistic 1: According to a survey by Trusted Choice, 77% of small business owners who bundle their insurance policies save up to 20% on their premiums. This means that bundling can help you save hundreds or thousands of dollars on your commercial umbrella insurance and other policies.
    • Statistic 2: According to a report by Insureon, the average cost of commercial umbrella insurance for small businesses is $1,585 per year, but it can vary widely depending on the industry, size, and risk profile of the business. This means that discounts can help you lower your commercial umbrella insurance cost significantly and make it more affordable for your business.

    How to find the best bundling and discounts for your commercial umbrella insurance?

    Now that you know how bundling and discounts can help you save money on your commercial umbrella insurance, you may be wondering how to find the best bundling and discounts for your business. Here are some tips to help you find the best deal for your commercial umbrella insurance:

    • Shop around: The first step to finding the best bundling and discounts for your commercial umbrella insurance is to shop around and compare quotes from different insurers. You can use online tools, such as Copilot, to get instant and personalized quotes from multiple insurers based on your business’s information and needs. You can also contact an independent insurance agent or broker, who can help you find the best coverage and price for your business from a variety of insurers.
    • Ask questions: The second step to finding the best bundling and discounts for your commercial umbrella insurance is to ask questions and negotiate with your insurer. You should ask your insurer about the types and amounts of discounts that they offer, and how you can qualify for them. You should also ask your insurer about the benefits and drawbacks of bundling your policies, and how it will affect your coverage and limits. You should also try to negotiate for a lower premium or a higher discount if you think you deserve it.
    • Review your policies: The third step to finding the best bundling and discounts for your commercial umbrella insurance is to review your policies regularly and update them as needed. You should review your policies at least once a year, or whenever there is a significant change in your business, such as adding or removing vehicles, employees, or locations, expanding or downsizing your operations, or changing your products or services. You should also update your policies to reflect any new safety measures or programs that you have implemented, or any new associations that you have joined. This can help you get more discounts or lower your premium for your commercial umbrella insurance and other policies.

    Summary

    Commercial umbrella insurance is a type of insurance that provides additional liability coverage for businesses beyond the limits of their standard liability policies. Commercial umbrella insurance can cover a wide range of liability exposures, such as personal injury, property damage, and advertising injury. However, commercial umbrella insurance can also be expensive, especially for small businesses that may not have a lot of assets or revenue to protect.

    One of the most effective ways to save money on commercial umbrella insurance is to bundle it with other insurance policies that you need for your business, such as general liability, commercial auto, or workers’ compensation. By bundling your insurance policies, you can get a multi-policy discount from your insurer, which can lower your overall premium. Another way to save money on commercial umbrella insurance is to look for discounts that your insurer may offer, such as for having a good claim history, implementing safety measures, or being a member of a professional association. By taking advantage of these discounts, you can reduce your commercial umbrella insurance cost even further.

    In this article, we have explained how bundling and discounts work for commercial umbrella insurance, and how you can use them to save money on your policy. We have also provided some examples, case studies, and statistics to illustrate the benefits of bundling and discounts for commercial umbrella insurance. By the end of this article, you should have a better understanding of how to get the best value for your commercial umbrella insurance policy.

    We hope that this article has been helpful and informative for you. If you have any questions or comments, please feel free to contact us. Thank you for reading and have a great day!

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