What Is Commercial Umbrella?
A Commercial Umbrella policy adds an extra layer of liability protection above your existing General Liability, Commercial Auto, and Employers Liability policies. If a serious claim exceeds your underlying limits, the umbrella may help pick up where those policies leave off, up to the umbrella's own limit.
Who Needs It
Businesses with significant customer contact, high-value contracts, vehicle fleets, or operations where a single severe claim could exceed standard policy limits often benefit from an umbrella. Many client contracts and leases specifically require umbrella limits beyond what a primary GL policy alone provides.
Real-Life Claim Scenarios
Catastrophic Auto Accident
A company vehicle is involved in a severe accident resulting in injuries that exceed the primary commercial auto liability limit. The umbrella policy may help cover the excess amount, up to its own limit.
Large Premises Liability Claim
A serious injury occurs on your premises and the resulting settlement exceeds your general liability limit. Umbrella coverage may help pay the difference, subject to policy terms.
Contract Requires Higher Limits
A large client requires $5M in liability coverage before signing a contract, but your primary GL policy caps out at $2M. An umbrella policy may help you meet that contractual requirement.
Multiple Claims in One Policy Year
Several liability claims in the same year erode your primary aggregate limit. An umbrella policy may help provide additional protection once the underlying aggregate is exhausted.
Severe Workplace Injury Lawsuit
An employer's liability claim tied to a serious workplace injury exceeds your workers compensation employer's liability limit. Umbrella coverage may help extend protection above that limit, subject to policy terms.
What It May Help Cover
- Excess coverage above your primary General Liability limits
- Excess coverage above your Commercial Auto limits
- Excess coverage above your Employers Liability limits
- Catastrophic injury and property damage claims
- Additional defense costs once underlying limits are exhausted
Coverage Limitations
A commercial umbrella typically follows the same terms as your underlying policies and generally does not broaden coverage beyond what those policies already provide. It usually does not extend to professional liability, and it typically requires specific underlying limits to be in place, subject to underwriting.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Current underlying liability, auto, and employers liability limits
- Desired umbrella limit
- Any contracts requiring specific excess liability limits
- Fleet size and vehicle use, if applicable
- Prior large claims or lawsuits
- Current insurance carriers for underlying policies
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to commercial umbrella? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Commercial Umbrella Quote
Tell us about your business and a Casurance specialist can help you review Travelers commercial umbrella options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
Get Your Instant Quote
Fast. Free. No Obligation.