A business owner should consider purchasing commercial umbrella coverage to safeguard their assets and finances against potentially catastrophic liability claims. While primary insurance policies like general liability or auto liability provide coverage up to a certain limit, these limits may not be enough to fully cover a large claim. In such cases, if the limits of the primary policies are exceeded, the business owner would have to cover the remaining expenses out of pocket. 

• Example: 
• If a commercial auto accident resulted in a liability claim of $750,000 against ABC Company, and their commercial auto policy had $500,000 liability limits, then the ABC Company would have to pay the additional $250,000 themselves if they did not have a commercial umbrella policy.

Commercial umbrella insurance steps in to provide additional coverage beyond the limits of primary policies offering an extra layer of protection against lawsuits, legal fees, medical expenses and other liabilities. This can be crucial for businesses facing high risk situations or industries prone to costly litigation.