Commercial Umbrella Insurance That Kicks In When Your Other Policies Max Out.

What Is Commercial Umbrella Insurance?

Commercial umbrella insurance — also called excess liability coverage — is a policy that sits above your existing business liability policies and provides additional coverage when a claim exceeds your underlying policy limits. It doesn’t replace your general liability, commercial auto, or workers’ compensation policies — it extends them, giving your business an extra layer of financial protection when a single incident results in a large judgment or settlement.

For example, if your general liability policy has a $1 million per-occurrence limit and a covered claim results in a $2 million judgment, a commercial umbrella policy is generally designed to help cover the gap. Without it, the remaining $1 million would come out of your business directly. Commercial umbrella policies typically provide coverage in increments of $1 million and are often one of the most cost-effective ways to significantly increase your overall liability protection.

An umbrella policy for business is commonly recommended for businesses with significant public exposure, high-value contracts, a fleet of vehicles, or industries where large liability claims are more common — such as construction, hospitality, transportation, and manufacturing. Many commercial landlords and enterprise clients also require vendors and contractors to carry excess liability coverage above a certain threshold. To find out what level of additional liability coverage makes sense for your business, contact a Saint Moore Insurance Agency agent.