Commercial Umbrella Insurance

How umbrella sits above primary policies

Umbrella is excess of underlying — meaning it activates only after the primary policy's limit is exhausted on a covered claim. A claim with $1.2M of damages against an operator with a $1M / $2M GL plus a $1M umbrella plays out: the GL pays its $1M limit, the umbrella pays the remaining $200K. The umbrella then has $800K of limit remaining for the rest of the policy year.

The umbrella covers the same kinds of claims as the underlying policies — bodily injury, property damage, employer's liability, commercial auto liability — at a higher limit. It does not add new coverage categories.

When you need an umbrella

Two primary triggers:

• Contractual requirements. Large venues, corporate clients, school districts, government contracts, and franchise agreements commonly require $1M to $5M umbrella as a condition of doing business.
• High-severity exposure. Operations where a single claim could realistically exceed primary limits — roofers, mechanical bull operators, event vendors, trampoline parks, anyone with substantial bodily-injury exposure.

We commonly write umbrella alongside specialty GL when the contract requires it or when the operation's claim history warrants it.

Tier options and limit selection

• $1M umbrella — the most common starter tier. Doubles the effective GL limit from $1M to $2M occurrence ($3M total tower with $2M aggregate).
• $2M umbrella — common for established operators with consistent corporate-event work.
• $5M umbrella — required by larger commercial venues, festival circuits, and high-severity operations.
• $10M+ umbrella — government contracts, large-property venues, and specific high-exposure operations.

Per-million cost decreases at higher limits because the probability of a claim reaching the higher attachment is lower. We quote multiple tiers during the quote so you can match to actual contract requirements.

What umbrella does NOT cover

• Anything excluded from the underlying primary policies — exclusions match
• Professional liability — requires its own excess (excess PL)
• Cyber liability — requires its own excess (excess cyber)
• Property damage to your own property — that is commercial property
• First-dollar coverage — umbrella is excess only

Common claim examples that reach the umbrella

• Multi-victim bodily injury at an event where damages exceed primary GL
• Severe traffic accident involving a commercial vehicle exceeding auto liability limit
• Slip-and-fall causing significant long-term injury with damages above primary GL
• Roof leak claim with substantial water damage exceeding primary GL

Frequently asked questions