A glossary is normally found at the end of an article? In this case, it makes sense to clarify one type of insurance cover from another before we delve into the topic.
Primary insurance cover responds first to an insured loss, either on a first dollar basis or after allowing for deductibles. Once the primary coverage limits have been paid, the outstanding loss is covered by any excess insurance in place.
Umbrella insurance cover generally provides excess coverage over various primary liability policies, such as commercial general liability, auto liability, and employers’ liability. The umbrella policy:
- provides excess limits when the limits of basic liability policies are depleted by the payment of claims,
- drops down and picks up where the underlying policy leaves off when the amassed limit of the primary policy in question is exhausted by the payment of claims, and
- offers protection against certain claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention (SIR).
Commercial General Liability covers business organizations against claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
As soon as you contact your insurance company about property damage or other losses, the insurance company will instruct a claims adjuster to evaluate the loss and calculate a settlement amount.
Ideally, the insurance company will accept your claim and provide a fair settlement. If, however, the insurance company rejects your claim, proposes a settlement lower than warranted, or acts in bad faith, then you will need an insurance lawyer.
Insurance attorneys assess your case to ensure that all is in order prior to litigating. A commercial law firm protects your rights against unethical insurance agencies and negotiate a fair settlement.