Manufacturing companies, heavy machinery operators, and large warehouse businesses face significant risks. These companies can be liable for bodily injury, property damage, and associated medical expenses. Even small startups and businesses with limited assets need robust coverage. Given that the total revenue for Canadian manufacturing reached $867 billion in 2022, marking a 17.4% increase from the previous year (1), the need for comprehensive insurance coverage is more critical than ever.
Why Extra Coverage is Essential
When a policy’s limits are reached, excess or umbrella coverage steps in to protect against substantial losses. Though often used interchangeably, they serve different purposes:
- Excess Liability Insurance
Provides additional coverage beyond an underlying policy. It can cover multiple policies like auto, fleet, professional, and general liability without requiring self-insurance retention.
- Umbrella Liability Insurance
Offers increased limits and can cover claims not included in underlying policies. It requires a self-insurance retention of at least $10,000.
Major Exposures
Companies face various risks, including:
- Operating large machinery
- Handling finished products
- Property damage and personal injury litigation
- Medical expenses from bodily injury
- Product defects or false advertising litigation
- Environmental hazards
- Industry Statistics
When Excess and Umbrella Coverage is Necessary
These policies are crucial in scenarios like:
- Covering legal defense costs for third-party damages
- Meeting higher limits for government contracts
SWG CGL: Excess & Umbrella
SWG CGL – Commercial General Liability insurance protects businesses from unforeseen events. It offers customizable coverage for store owners, office professionals, and wholesalers.
Key Features of Umbrella Insurance
Umbrella policies can:
- Apply to multiple liability policies
- Drop down when aggregate limits are exhausted
- Cover claims beyond underlying policies
Coverage Highlights
- Liability for insured contracts
- Cross liability
- Excess of Contingent employer’s liability
- Product Completed Operations coverage
- Limits up to $10,000,000+
- Coverage for U.S. and worldwide sales
*Content is current as of the broadcast date and subject to change.
* *Insurance coverage availability may differ between provinces.
Source:
1. Statistics Canada
