Commercial Umbrella Insurance

Commercial Umbrella Liability insurance adds a layer of liability limits protection to three other commercial policy coverage owned by a business client. It is important for each business client to consider buying Commercial Umbrella Liability since there seems to be a continued increase in litigation against business clients and the products or services they provide.

Commercial Umbrella Liability insurance attaches to these three underlying policies:

  1. Commercial General Liability,
  2. Workers’ Compensation Employers Liability, and
  3. Commercial Auto Liability.

Commercial Umbrella Liability is sold in layers of $1,000,000 which add to the underlying limits of liability. Here is an example:

A painting contractor decides to purchase a Commercial Umbrella Liability policy with an Occurrence and Aggregate limits of $1,000,000 in addition to the Commercial General Liability, Workers’ Compensation and Commercial Auto Liability policies.

This contractors has Commercial General Liability limits of $1,000,000 Occurrence and $2,000,000 Aggregate; Workers’ Compensation Employers Liability limits of $500,000 each injury, $500,000 each disease, and $500,000 disease limit; and Commercial Auto Liability limits of $500,000 for Bodily Injury and Property Damage.
With the purchase of the Commercial Umbrella Liability policy, this painter has layered protection of

  • Third party liability $2,000,000 each Occurrence and $3,000,000 Policy Aggregate,
  • Workers’ Compensation Employers Liability limits of $1,500,000 for each injury, each disease and disease limit, and
  • Auto liability limits of $1,500,000 for Bodily Injury and Property Damage for each occurrence.

Many of our clients buy Commercial Umbrella Liability insurance for as low as $750 annually.