Commercial Umbrella Insurance
Extra liability protection when your underlying policies are not enough.
Commercial umbrella insurance provides an additional layer of liability coverage above your general liability, commercial auto, and employers liability policies. When a catastrophic claim exceeds your primary coverage limits, your umbrella policy kicks in to protect your business assets from devastating judgments.
Get a Commercial Umbrella Quote
Surprisingly affordable protection against catastrophic claims
How Commercial Umbrella Coverage Works
Sits Above Your Underlying Policies
Commercial umbrella insurance provides an additional layer of liability protection that kicks in after your primary policies (general liability, commercial auto, employers liability) are exhausted. Think of it as a safety net above your safety nets.
Kicks In When Limits Are Exhausted
If a claim exceeds your underlying policy limits, the umbrella policy pays the difference up to its own limit. For example, if you have $1 million in general liability and face a $2 million judgment, your umbrella covers the additional $1 million.
Covers Multiple Underlying Policies
One umbrella policy can provide excess coverage over your general liability, commercial auto, and employers liability all at once. This makes it incredibly cost-effective compared to increasing limits on each policy individually.
May Provide Broader Coverage
Some umbrella policies cover claims that your underlying policies exclude entirely (subject to a self-insured retention). This can fill gaps in your overall liability protection.
Policies Your Umbrella Covers
Your umbrella policy stacks on top of these underlying policies:
General Liability
Scenario: Multiple people injured in an accident at your premises. Medical bills, lost wages, and legal fees exceed your $1M limit.
Umbrella Role: Umbrella pays the excess above your general liability limit.
Commercial Auto
Scenario: Your delivery driver causes a serious multi-vehicle accident with multiple injuries exceeding your $1M auto liability limit.
Umbrella Role: Umbrella pays above your commercial auto limit.
Employers Liability
Scenario: An employee injury lawsuit results in a judgment exceeding your employers liability coverage.
Umbrella Role: Umbrella pays above your employers liability limit.
Note: Most umbrella policies require you to maintain certain minimum limits on your underlying policies (often $1 million per occurrence for general liability and auto). We will help you structure your coverage correctly.
Who Needs Commercial Umbrella Insurance?
Any business that cannot afford to lose everything in a single lawsuit. If a judgment exceeds your underlying policy limits, your business assets—and potentially personal assets—are at risk.
Businesses with Significant Assets
Protect assets that could be seized in a lawsuit exceeding your underlying limits
Contractors & Construction
High-risk operations with potential for catastrophic injuries or property damage
Fleet Operations
Multiple vehicles on the road increase exposure to major auto accidents
Manufacturing
Product liability claims can result in multi-million dollar verdicts
Property Owners
Premises liability claims can be substantial, especially with multiple tenants
Businesses with Contractual Requirements
Many contracts require higher liability limits than standard policies provide
Companies with Employees at Client Sites
Working at third-party locations increases liability exposure
Any Growing Business
As you grow, your exposure to large claims grows too
Real Claims Examples
See how umbrella coverage protects businesses in catastrophic scenarios:
Catastrophic Premises Injury
Scenario: A customer falls down stairs at your business, suffering a severe spinal injury. Medical bills, lost wages, and pain and suffering damages total $2.8 million.
Coverage: Your $1 million general liability pays first. Your $2 million umbrella covers the remaining $1.8 million. Without the umbrella, you would owe $1.8 million out of pocket.
Multi-Vehicle Auto Accident
Scenario: Your company vehicle runs a red light and causes a chain-reaction accident injuring five people. Total claims reach $3.5 million.
Coverage: Your $1 million commercial auto pays first. Your umbrella covers the additional $2.5 million. The umbrella literally saves your business.
Product Liability Mass Claim
Scenario: A defective product you manufactured injures multiple consumers. Combined claims and legal fees total $4 million.
Coverage: After your $1 million general liability is exhausted, your $5 million umbrella covers the remaining $3 million and provides ongoing defense costs.
Severe Workplace Injury Lawsuit
Scenario: An employee injured on the job sues for gross negligence (not covered by workers comp). The jury awards $1.5 million.
Coverage: Your employers liability pays its $500,000 limit. Your umbrella covers the additional $1 million judgment.
What Affects Your Premium?
Commercial umbrella premiums are based on your overall risk profile:
Underlying Coverage Limits
Higher underlying limits may qualify you for lower umbrella rates since less risk transfers to the umbrella
Business Type & Risk Profile
Low-risk office businesses pay less than high-risk contractors or manufacturers
Number of Vehicles
More vehicles means more auto liability exposure for the umbrella to cover
Employee Count
More employees increases employers liability exposure
Claims History
Prior claims, especially large ones, increase your umbrella premium
Umbrella Limit Selected
$1M, $2M, $5M, or higher—cost increases with the limit but not proportionally
Why Umbrella Coverage Is Surprisingly Affordable
Many business owners are surprised at how little umbrella coverage costs for the protection it provides:
Leverage Effect
Adding $1 million in umbrella coverage typically costs far less than increasing your underlying limits by $1 million. You get more protection for less money.
Low Claims Frequency
Because umbrella policies only pay after underlying limits are exhausted, claims are relatively rare. This keeps premiums affordable.
Multi-Policy Coverage
One umbrella policy covers multiple underlying policies. Buying separate excess coverage for each would cost significantly more.
Real Cost Example
Many small to mid-size businesses can add $1-2 million in umbrella coverage for $500-$1,500 per year. That is remarkably affordable protection against business-ending lawsuits.
The Bottom Line: Commercial umbrella insurance is one of the best values in business insurance. For a relatively small premium, you get substantial protection against the claims that could otherwise destroy your business. It is not a question of if you can afford umbrella coverage—it is whether you can afford to be without it.
Get Your Commercial Umbrella Quote
Protect your business from catastrophic claims. Commercial umbrella coverage is more affordable than most business owners expect.
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Ryan Parrack Insurance
Serving Elkins, Buckhannon & Northern/Central WV
Elkins, WV