Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage above the limits of your existing business policies, such as general liability, commercial auto, and employers’ liability. It helps protect your business from large or catastrophic claims.

Lawsuits and jury awards continue to grow. A single serious injury or accident can exceed standard policy limits. Commercial umbrella insurance helps protect business assets, cash flow, and future earnings when base coverage is not enough.

Commercial umbrella coverage typically extends over:

• General liability insurance
• Commercial auto liability
• Employers’ liability (part of workers’ compensation)

It activates when the underlying policy limits are exhausted.

Coverage needs vary by industry, vehicle use, and risk exposure. Many businesses carry $1 million to $10 million in umbrella limits. Businesses with vehicles, public interaction, or employees often benefit from higher limits.

No, umbrella insurance is usually not required by law. However, it is often required by contracts, landlords, lenders, or clients—and strongly recommended to protect against catastrophic losses.

Umbrella insurance may help cover:

• Severe bodily injury claims
• Large property damage losses
• Auto accident liability
• Employer liability claims
• Lawsuits and legal defense costs

Coverage applies only when an underlying policy responds first.

Umbrella insurance does not replace workers’ compensation, but it can extend employers’ liability coverage, which applies if an employee sues the business outside of standard workers’ compensation benefits.

Yes. If a commercial auto claim exceeds the auto policy’s liability limits, umbrella insurance can provide additional coverage—helping protect your business from major auto-related lawsuits.

Compared to the amount of protection it provides, commercial umbrella insurance is often very affordable. Many businesses are surprised how low the cost is relative to the added liability limits.

No. Commercial umbrella insurance does not extend over professional liability or errors and omissions (E&O) policies. Those require separate coverage.

Yes. If a judgment exceeds your insurance limits, courts may seize business assets and potentially allocate future earnings. Umbrella insurance helps reduce this financial risk.

Umbrella coverage is especially important for:

• Businesses with employees
• Businesses that own or use vehicles
• Contractors and service businesses
• Landlords and property owners
• Retailers and businesses open to the public

You can get started by reviewing your existing policies and liability limits. An independent agent can then help you compare umbrella options and design coverage tailored to your business.