Building Owners » Commercial Umbrella

Background of Commercial Umbrella Policy

In 2002, 1.5 million lawsuits were filed in California. [Source: 2003 Court Statistics Report by the Judicial Council of California] It seems that nearly any one who is injured now seeks a “responsible party” (or, if not responsible, at least a deep pocket) for the potential of a high-dollar settlement.

Are building owners a likely target of such litigation? Absolutely. The courts see building owners as deep pockets with millions of dollars of assets (even if they aren’t liquid), and have held building owners culpable for injuries and property damage related to maintenance of the building they own. For years, building owners have been strongly advised to purchase additional liability protection. Because of the broad coverage and relatively low cost, this additional liability coverage is often not purchased on the underlying liability policies, but rather in the form of an “excess” policy, called a commercial umbrella.


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