What is Commercial Umbrella Insurance?

Commercial umbrella insurance provides additional liability protection above the limits of your underlying policies. When a claim exceeds your general liability, auto liability, or employers liability limits, umbrella coverage kicks in to cover the excess. It’s your protection against catastrophic claims.

As your business grows, so does your potential liability exposure. Umbrella coverage ensures a single major claim doesn’t wipe out everything you’ve built.

What Does Umbrella Insurance Cover?

Umbrella policies provide excess coverage over your general liability, commercial auto, and employers liability policies. Some umbrellas also provide broader coverage for certain claims that underlying policies might exclude. When underlying limits are exhausted, the umbrella pays up to its limit.

How Much Umbrella Coverage Do You Need?

The right amount depends on your exposure: your assets, your revenue, your contract requirements, and your industry’s litigation climate. Many businesses carry $1-5 million in umbrella coverage, but larger operations may need more. Umbrella coverage is typically quite affordable relative to the protection it provides.