The short version
- Vehicles drive the number. State minimums are $25,000 per person in Washington and Idaho, far below what a serious crash can cost.
- Contracts set the floor. The highest umbrella limit any client, landlord, or general contractor requires is the minimum.
- Assets set the ceiling. Think about what a judgment above your limits could take: business assets, receivables, and the value of the company.
- Large verdicts are a planning reality. Jury awards in serious injury cases can run far above primary limits, which is why umbrellas exist.
- State law shapes exposure: Washington's joint liability when the plaintiff is not at fault and Idaho's punitive damages rules both matter.
The four inputs
| Input | Questions to ask |
|---|
| Vehicles | How many, how heavy, how far, who drives, and do employees use their own cars for work? |
|---|
| Premises, operations, and products | Do customers or the public come onsite? Do you sell products or do work that could fail later? |
|---|
| Contracts | What do your client agreements, leases, and subcontracts require, per occurrence and in total? |
|---|
| Assets | What could a judgment above your limits reach, including the value of the business? |
|---|
Common starting points
| Business | Common starting range |
|---|
| Office-based professional firm, few vehicles | $1 million to $2 million |
|---|
| Retail store or restaurant | $1 million to $5 million |
|---|
| Contractor with trucks and job sites | $2 million to $5 million, often more for commercial work |
|---|
| Property owner with several buildings or LLCs | $2 million to $5 million |
|---|
| Fleet, trucking, or high-hazard operations | Higher, often stacked with excess layers |
|---|
These are starting points to discuss, not recommendations for any specific business. Contract requirements and assets can move the number up quickly.
Washington and Idaho rules that affect the limit
| Rule | Effect |
|---|
| Washington joint and several liability when the plaintiff is not at fault (RCW 4.22.070) | A defendant can be responsible for more than its own share of a judgment |
|---|
| Washington bars punitive damages without express statutory authority (Dailey v. North Coast Life, 1996) | Umbrella sizing in Washington centers on compensatory damages |
|---|
| Idaho punitive damages allowed, capped at the greater of $250,000 or three times compensatory damages (Idaho Code 6-1604) | Punitive exposure exists, though insurability depends on the policy |
|---|
| Idaho modified comparative fault (Idaho Code 6-801) | A plaintiff equally or more at fault recovers nothing |
|---|
| Federal motor carrier minimum of $750,000 for interstate for-hire general freight in heavier vehicles (49 CFR 387.9) | Trucking businesses start with higher primary auto limits |
|---|
When to stack excess above the umbrella
- A contract requires more than a single umbrella insurer will offer
- Your fleet or operations make high limits expensive from one insurer
- You want separate insurers to spread the program
See umbrella vs excess liability for how stacking works.
Sources
This page is general information, not a recommendation of limits for any specific business. Reviewed October 2026.