Commercial Umbrella Insurance
A commercial umbrella sits on top of your general liability, commercial auto, and employers liability policies. When a claim exhausts one of those limits, the umbrella pays the rest, up to its own limit.
It is the cheapest way to buy large limits. It is also how you meet contract requirements for $2, $5, or $10 million of coverage without raising every primary policy.
What it covers
- Liability above the limits of your GL, auto, and employers liability policies
- Some claims the underlying policies exclude, subject to a retention
- Additional defense costs on large claims
What it does not cover
- Professional liability, cyber, and D&O, which need their own excess policies
- Anything the umbrella form specifically excludes, which varies by carrier
- Gaps created when underlying limits do not match the umbrella's requirements
Who needs it
Businesses with vehicles on the road, crews on client property, public foot traffic, or contracts that require limits above $1 million. Also owners whose personal wealth makes the business an attractive target.
What drives the price
- Underlying policies and their limits
- Fleet size and driver records
- Industry hazard
- Limit purchased
Where owners get caught: two umbrellas that do not talk to each other
Most owners have a personal umbrella and a commercial one, bought from different people who never compared notes. A claim tied to a vehicle titled to the business but driven on a weekend, or an LLC rental property, can fall between the two. Because Trella writes both sides, we build them together so nothing lands in the middle.
For the personal tower, see personal umbrella insurance sized to net worth on Trella Insurance.
Commercial Umbrella: common questions
What is the difference between an umbrella and excess liability?
Both add limits above your primary policies. An umbrella can sometimes broaden coverage for claims the primary policies exclude; a pure excess policy only follows the terms of the policy beneath it.
How much commercial umbrella coverage should I carry?
Start with what your contracts and leases require, then consider the realistic worst case: a serious auto accident or injury claim. Many small businesses carry $1 to $5 million.
Does my personal umbrella cover my business?
Personal umbrellas typically exclude business activities. If you own a business, you generally need a commercial umbrella for its exposures and a personal umbrella for yours.
Commercial Umbrella in practice
Illustrative stories of businesses that needed it, and what else their review turned up.
A Roofer's Umbrella Only Works if the Policies Underneath It Are Right
A roofing company needed a $5 million umbrella for commercial jobs. The review found that without stop-gap and the right GL form underneath, the umbrella would not have responded to the claims roofers actually face.
UmbrellaGLStop-gapEvents and hospitalityA Wedding Venue's Umbrella Was the Difference Between a Claim and a Catastrophe
A barn wedding venue hosted two hundred guests most weekends. Its liability limits were set for a much smaller business, and outside caterers and bartenders brought exposures it had never considered.
UmbrellaGLPropertyFood and beverageThe Brewery Taproom That Was Insured as a Factory, Not a Bar
A craft brewery grew its taproom into a busy neighborhood spot with trivia nights and food trucks. Its insurance still described a small production brewery with a tasting room, and the review found the gaps that followed.
UmbrellaPropertyGLReal estateThe Mixed-Use Building With Apartments Upstairs and a Bar Downstairs
An investor bought a three-story building with retail on the ground floor and six apartments above. The previous owner's insurance didn't account for the tenants below, and the review found why a bigger umbrella was the right answer.
UmbrellaPropertyGLReal estateA Condo Board Voted on a Special Assessment. Then an Owner Sued the Board.
A forty-unit condo association's volunteer board approved an expensive envelope repair. An owner who disagreed filed suit against the board members personally, and the association's D&O limit turned out to be the smallest number in its program.
D&OPropertyUmbrellaConstructionA Spokane Painter Took a Job in Coeur d'Alene. Washington L&I Didn't Follow His Crew.
A commercial painting company based in Spokane began taking jobs across the Idaho line. The review found its crew wasn't clearly covered for injuries in Idaho, and its stop-gap and umbrella had gaps of their own.
Stop-gapGLUmbrellaUsually written alongside
General Liability
Injury and property damage claims from customers, clients, and the public. The policy most contracts require.
Learn moreCommercial Auto
Vehicles your business owns, plus liability when employees drive their own cars for work.
Learn moreWorkers Comp & Stop-Gap (WA)
Washington workers comp runs through L&I. Stop-gap covers the lawsuits L&I does not.
Learn morePart of the programs we build for contractors & trades, restaurants & food, real estate & property owners and retail & shops.
Not sure your commercial umbrella coverage fits?
Send us what you have. We review it line by line against your leases and contracts, and tell you plainly what is missing. Free, and no obligation.