What Is a Commercial Umbrella Policy?

A commercial umbrella provides excess liability limits above your underlying General Liability, Commercial Auto, and Employers Liability policies. When a claim exceeds your primary policy limit, the umbrella steps in to pay the difference — up to its own limit.

When Does the Umbrella Trigger?

The umbrella activates when the underlying policy limit is exhausted. For example: a slip-and-fall at your business results in a $2.3M jury verdict. Your GL policy has a $1M per-occurrence limit. The remaining $1.3M is paid by a $2M commercial umbrella.

Umbrella Costs and Limits

Umbrella LimitEstimated Annual Premium
$1,000,000$400–$900/yr
$2,000,000$600–$1,400/yr
$5,000,000$1,200–$3,000/yr