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Brandon Thompson - CEO - Commercial and Personal Insurance Agent -
Kirk Reisner - CFO - Commercial Insurance Agent -
Jenessa Figinsky Commercial Account manager Springfield, MO -
Tyler Hunter - Licensed Producing Agent, Oak Grove, MO
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance provides additional liability limits above eligible underlying policies, which may include general liability, commercial auto liability, and employers liability.
For example, suppose your commercial auto policy has a $1 million liability limit and a covered accident results in $2 million in covered damages. An applicable umbrella could help pay the amount above the auto policy’s limit, subject to its terms and available limits.
An umbrella has its own coverage conditions and exclusions. It does not automatically cover every claim excluded by your other insurance.
What Does Commercial Umbrella Insurance Cover?
A properly arranged umbrella can provide additional limits over several types of liability coverage.
General Liability
Additional protection for covered bodily injury and property damage claims arising from your premises, operations, or completed work.
Commercial Auto Liability
Additional liability protection for covered accidents involving business vehicles. Your agent should also review whether hired and non-owned auto liability is included.
An umbrella does not increase comprehensive or collision coverage for damage to your own vehicles.
Employers Liability
Additional protection may be available over the employers liability portion of your workers’ compensation policy.
This does not increase statutory workers’ compensation benefits. Employers liability addresses certain liability claims involving employee injuries, while workers’ compensation provides benefits under applicable state law.
Each underlying policy must meet the umbrella’s requirements and be included as intended.
Who Should Consider Commercial Umbrella Insurance?
Additional liability protection deserves consideration if your business:
- Operates service vehicles, delivery vehicles, or trucks.
- Works at customers’ homes or commercial properties.
- Performs construction, installation, maintenance, or repair work.
- Has employees working around the public.
- Signs contracts requiring higher liability limits.
- Has substantial assets or an established income-producing operation.
Contractors, HVAC companies, plumbers, electricians, pest control businesses, tree services, restaurants, and property owners can all have exposures worth reviewing.
Do Subcontractors Need Commercial Umbrella Insurance?
Some general contractors require subcontractors to carry liability limits matching their project requirements. You may encounter contracts requiring $2 million or more in liability coverage, with higher limits for certain jobs.
An umbrella may help satisfy those requirements when the contract allows a combination of underlying and umbrella coverage.
For example, a contract may permit a $1 million general liability limit plus a $1 million applicable umbrella to meet a $2 million per-occurrence requirement.
However, a $2 million general aggregate is not the same as $2 million per occurrence. A policy with $1 million per occurrence and a $2 million aggregate does not provide $2 million for one occurrence.
Send MBG Insurance the insurance requirements before accepting a project. We can review the requested limits, additional insured provisions, and other coverage requirements with you.
Why Should Businesses With Multiple Vehicles Review Their Limits?
A small company can have substantial exposure on the road.
If your business operates five to ten vehicles, employees may drive thousands of miles each month between customers, suppliers, and job sites. One serious accident could involve multiple injured people and damages exceeding your commercial auto liability limit.
When reviewing umbrella coverage, we consider your vehicle types, drivers, annual mileage, driving territory, trailers, and use of hired or employee-owned vehicles.
Your coverage should reflect how your business operates today.
How Can an Umbrella Help Protect Your Business Assets?
Your business may represent years of investment in vehicles, equipment, customer relationships, and recurring revenue.
A covered liability claim exceeding your primary insurance could leave the business responsible for a significant remaining balance. An umbrella provides additional available insurance that may help reduce that financial burden.
It does not insure the sale price of your company or guarantee its value. It adds protection against covered liability losses that could put business resources at risk.
How Much Commercial Umbrella Coverage Do You Need?
The right limit depends on more than a customer’s minimum requirement.
Important considerations include:
- The potential severity of an accident involving your operations.
- Your vehicles, mileage, and driving exposures.
- The properties and job sites where you work.
- Contractual insurance requirements.
- Business assets and financial resources.
- Growth in employees, revenue, or services.
MBG Insurance can help you compare available limits and pricing. Your business’s value is part of the discussion, but a serious claim can exceed that value.
How Much Does Commercial Umbrella Insurance Cost?
Pricing depends on your operations, underlying insurance, requested limits, claims history, vehicles, and other underwriting factors.
A business with one vehicle and limited public contact will present a different risk than a contractor operating ten service trucks.
We review your operations and underlying policies to explore available options with carriers that fit your business.
Why Choose MBG Insurance?
MBG Insurance helps business owners understand how their policies work together.
As an independent agency, we work with multiple insurance companies and review options based on your operations and coverage needs. Our team can help you evaluate:
- Whether your intended underlying policies are included.
- Required underlying liability limits.
- Customer and contractor insurance requirements.
- Coverage changes as your business grows.
- Available umbrella limits and pricing.
Our Springfield and Oak Grove, Missouri, and Bentonville, Arkansas, offices work together to serve businesses across both states.
Commercial Umbrella Insurance FAQs
Helpful Articles from the InsuranceNerds!
"Kirk and the Crew at Millennium have gone above and beyond to help me find the right insurance for my rental properties. They always take the time to explain the options of each company they bring to the table. I highly recommend MBG Insurance for all your insurance needs."
JW Delong
"Can't say enough good things about Tyler and MBG Insurance. I reached out to 4 insurance brokers, he was by far the quickest and most knowledgeable about the industry. Also gave me recommendations and discounts that I was not aware of. In the end I was able to lower my insurance premium by 17%."
Derek Lee
