When it comes to understanding commercial marine insurance, the difference between umbrella and bumbershoot policies can be tricky to navigate. Thankfully with our commercial marine insurance specialists, you don’t have to figure it out on your own. Here’s what you need to know:

An umbrella insurance policy works the same in commercial marine insurance as it does for other insurance coverage, for example home or auto. If you have umbrella policy it offers excess coverage in case of catastrophic loss. Generally, an umbrella insurance policy is written over primary liability policies – perhaps general liability for a commercial enterprise, liability for a commercial marine vessel, and perhaps employer’s liability. The umbrella policy will provide for excess insurance when the primary coverage is exhausted and potentially provides coverage not offered by the underlying policies; for example, if you are sued for damages to someone else’s property or for accidentally causing injuries to someone.

A bumbershoot insurance policy is a specialized kind of umbrella coverage intended for risks associated specifically with wet marine liability (but it could also apply to non-marine risks). Like other umbrella policies, bumbershoot policies provide broader coverage than underlying primary liability insurance policies. Because it is designed with marine risks in mind, a bumbershoot may offer coverage for unique expenses related to collision and salvage as well as liability coverage that meets the standards set by the Longshoreman and Harbor Workers’ Act. This type of commercial marine insurance policy is often selected by shipyards, for example.

Marine business owners face unique challenges and need to assess risks when determining which available commercial marine insurance options will protect them best. For example, it may be wise to consider environmental liability (including third party considerations such as bodily injury, damage to property, and business interruption) or workers’ compensation for marine businesses.

The good news is you don’t have to figure out these comprehensive coverage options on your own.