Commercial Umbrella Insurance

Request a Quote Call (916) 967-7715

A single serious claim, such as a vehicle accident involving a company truck or an injury at a job site, can be larger than the limit on one policy. A commercial umbrella gives your business another layer of liability protection on top of the policies you already carry. Lions & Coventry Insurance Services, established in 2009 and licensed in all 50 states (CA Lic. #0G22084), writes commercial insurance only. This page covers business umbrella and excess policies, not personal coverage.

Who needs commercial umbrella insurance

• Contractors and construction firms. General contractors and project owners often require subcontractors to carry limits above their general liability policy. See construction insurance and contractors insurance.
• Trucking and transportation companies. Vehicle accidents are a common source of large liability claims, and shippers and brokers may set minimum limits in their contracts. See transportation insurance, trucking insurance and commercial auto insurance.
• Cannabis businesses. Landlords, lenders and business partners may ask licensed operators for higher liability limits. Not every carrier writes cannabis umbrella coverage, so availability depends on your license type and state. See cannabis business insurance and cannabis general liability.
• Property owners and landlords. Owners of commercial and rental buildings face premises liability claims from tenants, visitors and the public. See landlord insurance for commercial property owners.
• Businesses with contract limit requirements. Leases, vendor agreements, public agency contracts and event venues often set liability limits above what a single primary policy carries.

How a commercial umbrella works with your underlying policies

An umbrella sits on top of your primary liability policies, which are called the underlying policies. Most commercial umbrellas are written over commercial general liability, commercial auto liability and the employer's liability part of your workers' compensation policy.

• The underlying policy pays first. When a covered claim reaches the limit of the underlying policy, the umbrella can respond above that limit, up to the umbrella limit.
• Exhausted aggregates. If claims use up an underlying aggregate limit during the policy period, the umbrella may step in for later covered claims, depending on the form.
• Required underlying limits. Carriers set minimum limits your underlying policies must carry. If an underlying policy lapses or carries a lower limit than required, you may have to cover the gap yourself.
• What it does not replace. An umbrella is liability coverage. It does not cover damage to your own property, and it does not replace statutory workers' compensation benefits or, under most forms, professional liability.

Umbrella vs. excess liability

The terms are often used interchangeably, but the policies can work differently:

• Excess liability usually follows the terms of the underlying policy, often called follow form. It adds limits but does not add coverage the underlying policy lacks.
• Commercial umbrella also adds limits, and some umbrella forms cover certain claims the underlying policies exclude, subject to a self-insured retention that you pay first.

Forms vary by carrier, so we compare the actual wording, including how additional insureds are handled, before you buy.

What drives your premium

We don't publish prices because every quote depends on underwriting. These are the main factors carriers weigh:

• Your industry and day-to-day operations
• The number and type of vehicles you run, who drives them and how far they travel
• Payroll, revenue and number of locations
• Claims history on your underlying policies
• The underlying limits you carry and the umbrella or excess limit you want
• Contract requirements, such as additional insured or primary and noncontributory wording
• The states where you operate

We quote nationwide. Request a quote or call (916) 967-7715.

How to get a commercial umbrella insurance quote

Five steps to prepare a commercial umbrella submission for a business anywhere in the U.S. This is brokerage guidance from Lions & Coventry Insurance Services, not legal advice and not a premium quote.

1. List your underlying liability policies — Gather the declarations pages for the policies an umbrella would sit over, typically commercial general liability, commercial auto and employers liability (the liability part of a workers compensation policy), with their current limits and carriers.
2. Find the total limits your contracts require — Check client contracts, general contractor agreements, leases and permits for the total liability limits they require. That number, minus your underlying limits, is a starting point for how much umbrella or excess limit to ask about.
3. Check the underlying limits the umbrella will need — Umbrella carriers usually require each underlying policy to carry minimum limits before they will sit over it. If an underlying limit is too low, it may need to be raised first, so review this before you apply.
4. Gather exposure and loss details — Have your operations description, revenue or payroll, vehicle and driver list, and recent loss runs for the underlying policies ready. Fleet size, driver records and the type of work you do are common things umbrella underwriters review.
5. Send the submission to a licensed broker — Share the facts above with us. We compare available umbrella and excess markets, explain whether a placement is admitted or surplus lines, and come back with options. We do not quote a premium before underwriting reviews the risk.

Related pages: commercial general liability, commercial auto insurance and workers compensation. Ready to start? Request a quote or call (916) 967-7715.