Extra liability limits above your general liability, commercial auto and employers liability — for the claim that runs past what those policies cover.
An umbrella sits above your underlying liability policies and pays what they cannot, usually in million-dollar increments. If a general liability claim exhausts your one million limit, the umbrella picks up from there.
It is inexpensive relative to the protection because it only responds to severe claims, which are rare. For most small businesses it is the cheapest meaningful increase in protection available.
Typically general liability, commercial auto and the employers liability section of your workers compensation policy.
Carriers set minimum underlying limits before they will write the umbrella — commonly one million on general liability and auto. If your current limits are below that, they have to come up first, which is usually a good trade anyway.
General contractors, property owners, municipalities and larger customers frequently require total limits above what a primary policy carries. An umbrella is how most small businesses meet a five million requirement without buying a five million primary policy.
Send us the insurance section of the contract and we will tell you what it actually requires. More on contract requirements.
An umbrella follows the underlying policies. If the loss is excluded below, it is generally excluded above — professional liability, cyber and employment practices claims are not covered unless those policies exist and the umbrella is written to sit over them.
It also does not cover your own property. Umbrella is liability coverage only.
Any business with vehicles, employees driving, customers on the premises, or contracts that specify limits. Also any business with meaningful assets, because a judgment above your limits reaches the business itself.
If you own rental property as well, the same umbrella can often extend over that exposure — worth asking about.
Far less per dollar of coverage than the underlying policies, because it only responds to severe claims. For many small businesses the first million is the least expensive line on the schedule.
Carriers typically require one million on general liability and commercial auto before writing an umbrella. If yours are lower, raising them is usually worthwhile on its own.
Generally not unless those policies exist underneath and the umbrella is written to sit over them. An umbrella follows the coverage below it.
Often yes, depending on how the entities are structured and which carrier writes it. Tell us what you own and we will look at it together.
Usually not. A one million primary with a four million umbrella commonly satisfies it at a fraction of the cost. Send us the contract language and we will confirm.
Send your underlying policies and we will check the limits an umbrella would need to sit above.