Frequently asked questions about commercial umbrella insurance

Umbrella liability insurance offers an extra layer of coverage, in case a claim exceeds certain liability insurance policies. Find out how to get a policy, when you need it, and the answers to other frequently asked questions below.

Commercial umbrella insurance requirements and coverage

What does umbrella insurance cover?

It kicks in after a claim exceeds your coverage limit on one of these underlying policies and provides coverage up to the policy limit of your umbrella policy.

What is not covered by an umbrella policy?

How do commercial umbrella limits work?

Commercial umbrella insurance provides added liability coverage in case you have a claim that exceeds the coverage limits of an underlying policy.

For example, imagine if you had a $1 million per-occurrence limit on your general liability policy, and a customer sues you over an accident that occurred at your business location. The medical bills, legal expenses, and damages from this accident could add up to $1.5 million, which would then exceed the limit on your general liability coverage.

If you had an umbrella policy, it would cover that excess $500,000 liability, up to the coverage limit of your umbrella insurance.

How much umbrella insurance do I need?

That depends on the size of your business, your liabilities, and any contractual obligations you have with clients. For example, if a contract requires you to have $5 million in general liability coverage, you could buy $2 million of general liability insurance with a $3 million umbrella policy to meet that obligation.

Umbrella insurance is available in $1 million increments. Keep in mind that you must have an underlying policy, such as general liability or commercial auto insurance, before you buy umbrella coverage.

If you're unsure how much coverage you need, you can chat with a licensed insurance agent.

Why do I need a commercial umbrella policy?

There are many reasons why you may need commercial umbrella coverage:

• It’s an affordable way of increasing your liability coverage to qualify for contracts
• Your business relies on a lot of foot traffic, which increases the risk of a lawsuit over slip-and-fall accidents and other mishaps
• Your work involves hazardous conditions, such as in construction or manufacturing, that could result in an employee injury
• You rely on business vehicles that spend a lot of time on the road, increasing your chance of an accident and a lawsuit

How to buy umbrella insurance coverage with Insureon

How quickly can I get commercial umbrella coverage with Insureon?

By providing basic information about your business, such as its location, the number of employees, and estimated revenue for the upcoming year, we’ll be able to give you multiple quotes from top U.S. carriers.

Our online application takes just a few minutes to complete, so that you can compare coverage and find the right policy for your business just moments after submitting your information. A licensed Insureon agent can also help you through this process.

Once you purchase coverage, it typically takes 24 to 48 hours to complete the process and receive your proof of insurance.