Commercial Umbrella and Excess Liability Insurance
One serious claim can exhaust a $1 million policy. Commercial umbrella and excess liability policies add millions of dollars of limits above your primary policies, and contracts, lenders and landlords often require them. Stonebrook builds single umbrellas and multi-layer excess towers for businesses nationwide.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What is commercial umbrella insurance?
A policy that adds liability limits above your general liability, auto and employer’s liability policies, and can sometimes cover claims they don’t.
What is the difference between umbrella and excess?
An umbrella can broaden coverage. Excess liability follows the terms of the policy below it and only adds limits.
How much umbrella coverage does a business need?
Enough to cover your largest realistic claim and meet contract requirements. Many businesses carry $5 million or more.
Does an umbrella cover professional liability?
Usually not. Professional, D&O and cyber need their own excess policies.
How umbrella and excess layers work.
Scheduled primary policies
General liability, commercial auto and employer’s liability, with required minimum limits.
Commercial umbrella
Adds limits above every scheduled policy and may drop down for some uncovered claims.
Excess layers
Additional limits stacked above the umbrella, often from several carriers.
Defense costs
Whether defense is in addition to or inside the umbrella limit.
Gaps between layers
Each layer should follow the one below it without new exclusions.
You likely need an umbrella if…
- You operate vehicles.Especially passenger vans, trucks or fleets.
- Contracts require it.Leases, lenders, municipalities and large customers often require $2 million to $10 million or more.
- You own habitational property.See multi-family and real estate investors.
- You care for people.Severe injury claims are common in healthcare and senior care.
- Juries are getting bigger.Large verdicts have become more common, and primary limits haven’t kept pace.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop umbrella and excess capacity across carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Umbrella and excess questions, answered.
What does commercial umbrella insurance cover?
A commercial umbrella adds liability limits above your general liability, commercial auto and employer’s liability policies. Some umbrellas also cover certain claims those policies exclude, after a self-insured retention.
What is the difference between a commercial umbrella and excess liability?
An umbrella can provide broader coverage than the policies beneath it. Excess liability follows the terms of the underlying policy exactly and only adds limits.
How much umbrella coverage does my business need?
Enough to cover your largest realistic claim and meet every contract, lease and lender requirement. Vehicle operations, habitational property and healthcare services usually call for higher limits.
Does a commercial umbrella cover professional liability or D&O?
Generally no. Professional liability, D&O and cyber need their own excess policies above their primary limits.
What is a self-insured retention?
The amount you pay before the umbrella responds to a claim that no underlying policy covers. It is often $10,000 to $25,000.
What is an excess tower?
Several excess policies stacked above an umbrella to reach higher total limits, often from different carriers. We structure towers so each layer follows the one below it.
Let’s build limits that match your real exposure.
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