Commercial Umbrella Insurance
What is Commercial Umbrella insurance?
A commercial umbrella policy provides extra liability coverage above the limits of your underlying policies, such as general liability, auto liability, or employers liability, helping protect your business from large claims or lawsuits.
How does umbrella coverage work?
If a claim exceeds the limits of your base policy, the umbrella policy activates and covers the remaining costs, up to the umbrella policy’s limits. For example, if you have $1 million in general liability and a $2 million umbrella, you’d have $3 million in total protection.
What policies can an umbrella extend?
Most umbrella policies apply to general liability, commercial auto, employer’s liability, and some may also extend to directors & officers, depending on the carrier.
Does an umbrella cover everything once my limits are used up?
Umbrella policies only extend covered claims from your underlying policies. They do not add new coverage types, and do not cover property damage to your own business, professional errors, or EPLI unless specifically endorsed.
Who needs a commercial umbrella policy?
Umbrella insurance is recommended for businesses that work directly with the public or clients, operate vehicles or job sites, have high foot traffic, or have valuable assets to protect against lawsuits. Even small businesses can face large claims that exceed primary policy limits.
What limits are available?
Commercial umbrella policies typically start at $1 million in additional coverage, with options to increase to $2 million, $3 million, or more, depending on your risk exposure and underlying policies.