Commercial umbrella insurance gives you extra coverage to help pay for costs that exceed certain liability policy limits. Without this type of commercial insurance coverage, you’d have to pay out of pocket for liability claims that cost more than your coverage limits

This can include:

• Legal costs
• Medical bills
• Damage to other people’s property
• Judgments and settlements

A commercial umbrella policy extends the limits of some of your primary liability insurance policies, such as general liability insurance and commercial auto insurance.

For example, if your company is found liable for a customer’s injury at your place of business and you are sued for $1.5 million but only have $1 million in liability coverage, a commercial umbrella policy could make up for the $500,000 shortfall, subject to the policy’s coverage limits. 

• General liability insurance
• Employer’s liability insurance(often included in workers’ compensation)
• Hired and non-owned auto insurance

Before you can purchase umbrella liability insurance for any of these policies, an insurer will require you to carry at least $1 million in coverage on the underlying policy.

Umbrella liability insurance cannot be added to professional liability insurance that covers lawsuits over professional mistakes, including undelivered services and missed deadlines.