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Commercial Coverage

Commercial Umbrella Insurance

One catastrophic judgment can exceed every policy limit you have. A commercial umbrella provides broad, cost-effective protection beyond your standard coverage — the last line of defense your business needs.

Interactive Example

See How Coverage Layers Work

Adjust the loss amount and umbrella limit to see exactly how your GL policy and Commercial Umbrella split a large liability loss — and what happens without an umbrella.

Liability Loss Event $2,000,000
You Pay Uncovered loss
☂ Commercial Umbrella $1,000,000 limit
GL Policy Limit $1,000,000
General Liability $1,000,000 limit
Adjust Loss Amount
$0 $1,500,000 $3,000,000
Quick Scenarios
Umbrella Policy Limit
General Liability pays
Commercial Umbrella pays
You owe out of pocket

What Commercial Umbrella Does

A Commercial Umbrella policy activates after your underlying liability limits — General Liability, Commercial Auto, or Employers Liability — have been fully exhausted. It then covers the remaining balance of a large claim or judgment, up to the umbrella's limits.

But unlike Excess Liability (which only extends the limits of specific underlying policies), a Commercial Umbrella provides comprehensive coverage that spans your entire business operation, including gaps in uninsured areas that your underlying policies may not address.

One catastrophic liability judgment can end a business. A commercial umbrella is often the most cost-effective protection against that risk — and is increasingly required by general contractors for subcontractors working on their projects.

What's Included in the Coverage

Excess Liability Coverage

Pays large claims and settlements that have exhausted the limits of your underlying liability policies.

Legal Defense Costs

Covers attorney fees, court expenses, and related litigation costs associated with covered claims.

Court Costs & Judgment Interest

Covers court costs and accruing interest on judgments — costs that can add up significantly during lengthy litigation.

Bond Premiums

Covers the cost of bonds required in the course of litigation, such as appeal bonds or injunction bonds.

Policy Structure & Pricing

Commercial Umbrella policies are written in $1 Million increments. The self-insured retention (essentially a deductible that applies to gaps in underlying coverage) is typically $10,000.

Pricing varies by business size and risk profile:

  • Small businesses with minimal exposure — starting around $400/year
  • Businesses with 7–10 employees — typically $1,250–$2,250/year depending on operations and risk class

For the broad protection it provides, a commercial umbrella is often one of the highest-value policies in a business's insurance program.