Umbrella Insurance

Extend Protection with Umbrella Liability Insurance for Extra Peace of Mind

When standard liability coverage isn’t enough, umbrella insurance provides an extra layer of protection. It kicks in when the limits of your underlying policies, like general liability or commercial auto, are exceeded. Whether you run a small business or manage multiple risks, umbrella liability insurance helps shield your assets from large, unexpected claims.

What Does Umbrella Insurance Cover?

Umbrella insurance provides additional liability coverage for businesses when the limits of certain underlying policies are reached.

What Is Umbrella Insurance?

Business umbrella insurance provides an extra layer of liability protection when the limits of your existing business insurance policies are exceeded.

It helps protect your business from the financial impact of large lawsuits or major liability claims.

Commercial umbrella insurance can help:

• Cover claims that exceed the limits of your general liability, commercial auto, or an employer’s liability, part of a workers’ compensation insurance policy.

• Protect business assets, cash reserves, and future income

• Reduce the risk that one large claim could threaten your company’s financial stability

• Provide broader protection for unexpected or high-severity liability losses

By extending coverage beyond standard policy limits, this type of coverage helps ensure your business can withstand costly legal claims without putting its long-term future at risk.

Key Aspects Of Umbrella Insurance

Umbrella insurance provides additional liability protection designed to cover large, unexpected claims that exceed the limits of your primary insurance policies.

Key aspects include:

• Excess liability coverage: Extends coverage limits above general liability, commercial auto, and employer’s liability coverage, which is part of workers’ compensation insurance.

• Broader commercial protection: May cover certain business-related personal injury claims, such as libel, slander, or advertising injury.

• Legal defense support: Helps cover legal defense costs associated with covered business liability claims and lawsuits.

• Cost-efficient risk management: Provides high liability limits, often starting at $1 million, at a relatively low cost compared to potential exposure.

What Is Not Covered?

Commercial umbrella insurance includes exclusions and does not cover every type of loss or liability.

• Business property damage: Damage to your company’s own buildings, equipment, or vehicles.

• Intentional or criminal acts: Losses resulting from deliberate, fraudulent, or illegal actions.

• Contractual liability: Obligations assumed under contracts or agreements, unless specifically covered by an underlying policy.

• Uncovered underlying risks: Claims not covered by the required primary insurance policies.

Policy Requirements

Insurers often require businesses to maintain specific minimum liability limits on underlying policies, such as general liability or commercial auto, before umbrella coverage applies.

Common minimum requirements include:

• General liability insurance – $1,000,000 per occurrence and $2,000,000 aggregate

• Commercial auto liability insurance – $1,000,000 combined single limit for bodily injury and property damage

• Employer’s liability insurance (part of workers’ compensation) – Typically $500,000 to $1,000,000 per accident, disease, or employee, depending on the insurer.

If a business does not maintain the required underlying limits, the umbrella insurance policy may not respond to a claim, or the business may be responsible for losses below the required threshold.

Who Needs Umbrella Insurance?

This type of insurance is designed for businesses that face higher liability risks and want protection beyond standard policy limits. It is especially important for companies that could be financially impacted by a large lawsuit or severe accident.

Businesses that commonly need commercial umbrella insurance include:

• Construction and contracting: Job sites, employees, and equipment increase the risk of large injury and property damage claims.

• Transportation and delivery: Commercial vehicles and frequent driving raise exposure to severe auto liability claims.

• Retail and restaurants: Customer foot traffic increases the risk of slip-and-fall and third-party injury claims.

• Manufacturing and industrial: Heavy equipment, facilities, and operations create higher exposure to catastrophic losses.

• Professional and business services: Advertising injury and third-party liability claims can exceed standard policy limits.

• Real estate and property management: Tenant and visitor injuries often lead to high-value liability claims.

• Contract-based businesses: Many leases and client agreements require higher umbrella liability limits.

Get The Best Umbrella Insurance For Your Business

Your Gild Insurance Agent is here to understand your business and find the right coverage tailored to your needs.

For a free, online quote in minutes, try out Gildber! The fast, hassle-free option for a business insurance. 

Frequently Asked Questions

What is umbrella insurance?

Umbrella insurance provides extra liability protection when the limits of your primary policies run out. It adds an additional layer of coverage above general liability, auto liability, or employer liability.

Do I need umbrella insurance for my business?

You may need it if your business faces higher liability risk or wants added financial protection. Businesses with employees, vehicles, customer-facing operations, or larger contracts often choose umbrella coverage.

What does umbrella insurance cover?

It can cover liability claims that exceed the limits of underlying policies, including bodily injury, property damage, and certain lawsuits. It does not replace primary coverage but extends it.

How much does umbrella insurance cost?

The cost depends on your business size, industry, risk exposure, and how much additional coverage you choose. It is often affordable compared to the protection it provides.