3 minute readBusiness
A commercial umbrella (or excess liability) policy sits above your general liability, commercial auto, and employer's liability limits and pays when a claim exceeds them. It is inexpensive relative to the exposure and is frequently required by contracts and landlords.
What you need to know
What it sits above
Underlying limits must meet the umbrella's requirements or a gap opens between the two.
Common limits
$1,000,000 to $5,000,000 is typical for small business; contracts often specify the number.
Auto is the usual trigger
Most large business liability claims start with a vehicle.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.