Commercial Umbrella Insurance

Umbrella, or excess liability, has become an increasingly critical component of a well-designed insurance program. A bit of a misnomer, umbrella coverage is designed to respond when the underlying liability limits of your various other policies have been exhausted by a claim.

Traditionally umbrella policies were thought of as only necessary for the most sophisticated and large-scale businesses. Today, we help clients understand the value of excess liability at any stage of their business life cycle. The reason? Umbrella coverage, as a function of premium paid for dollars of protection, is relatively inexpensive. Adding protection in increments of a million dollars through excess liability can result in a total limit that is much more suitable in today’s day and age, where lawsuits and their dollar amounts seem to know no limit.

Personal umbrella liability is also available for the owners and stakeholders of a business through Mason & Mason’s personal lines practice.

Guard against:

  • High-dollar claims for property damage and bodily injury where general liability limits can quickly be exhausted
  • Personal Injury
  • Lawsuits involving accusations of libel or slander (some carriers)
  • International risk

We suggest a full review to assess the risk to your business’s current and future value in comparison to your program’s current limits of liability.

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Hospitality Industry & Restaurant Insurance Team

"I’m very grateful for the depth of knowledge possessed by our team at M&M Assurance, and their excellent commitment to customer service. Knowing that they are handling our risk management means I am freed up to focus on our restaurant and our guests."

Nora Mulkern-Bean, The Shannon Door Pub & Restaurant

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Who’s Your Star?

Small and medium-sized businesses often have employees that are “stars.” Sometimes the star is the CEO or president, other times there is a salesperson who consistently outsells every other sales team member by a two to one margin. Maybe you’re a software company that has a star coder whose ideas led to your product being a number one editor’s choice. The point is that most companies have an employee or two that helps their business thrive. What happens to your business in the short-term if a star employee, referred to by the insurance industry as a “key man,” dies?

According to a study conducted by the National Association of Insurance Commissioners (NAIC), only 22% of small businesses carry this type of coverage.

Death is an issue that most people do not like discussing, so many small and medium-sized businesses do not have detailed succession plans, and key person life insurance remains an unresolved issue. It is a discussion that helps your company survive the difficult times that can follow the death of a key person.

What is Key Person Life Insurance?

Key man life insurance protects a business from economic loss relating to the death of a key employee. The company buys the insurance, owns the policy, and is the beneficiary of the policy in the event of the sudden death of the insured. Payment from the insurance company to the business is a lump sum, and there are no restrictions on how the company can use the money. Most companies use the money to stabilize the business until they find the key person’s replacement.

Types of Key man Life Insurance

Businesses gravitate to two kinds of policies for key employee life insurance.

Term Life Insurance. Startups favor this type of policy. Startups always try to conserve cash, term life insurance is cheaper than any other kind of personal life insurance.

Policies that build cash value. Whole life or universal life insurance builds cash value that increases the cash value of the policy and is an asset on the company’s book. The company can get access to the excess cash value of the policy at any time for any purpose since the money from the cash buildup belongs to them.

Life insurance premiums vary between companies and smart companies comparison shop for the best insurance program.

The discussion is uncomfortable, but if you do not have key man insurance, it’s worth talking about.