What it is
Commercial umbrella insurance adds more liability limit above your underlying policies, such as general liability, commercial auto and employer’s liability. If a serious claim is larger than the limit on one of those policies, the umbrella may help with the rest, subject to its terms.
Umbrellas usually require you to keep certain underlying policies and limits in force.
What it may cover
- Additional liability limits above general liability, commercial auto and employer’s liability
- Defense costs and covered settlements or judgments above the underlying limits, depending on the policy
Who may need it
You may need this coverage if:
- A single claim could be larger than your current limits
- A contract, lease or client asks for higher limits than your primary policies carry
- Your business has vehicles, public traffic or many customers on site
Coverage, limits, exclusions and eligibility vary by insurance company and policy, so the policy wording is what counts.
Questions worth asking
- Which of my policies does the umbrella sit on?
- What underlying limits do I need to keep?
- What is excluded?
- Do my contracts ask for a specific total limit?
Related coverage
Reviewed by a licensed agent. A licensed CBIS agent goes over this section with you, so you only look at what fits your business.
Ready to talk it through? Call (858) 283-7575 or book a free call with a licensed agent. Not sure this is the right coverage? Start with our guide: what insurance does my business need?