By the General Liability Guide Editorial Team. Our guides are verified against actual insurance carrier rate sheets and state industrial commissions.
In a world of "nuclear verdicts," a standard $1 million general liability policy can be exhausted by a single major accident. An Umbrella policy provides an extra $1M, $2M, or $5M of protection.
How It Works
Think of it as a "booster" for your other policies. It sits on top of your General Liability, Commercial Auto, and Employer's Liability. If a claim hits $1.5M and your GL limit is $1M, the Umbrella picks up the remaining $500,000.
Cost Efficiency
Umbrella insurance is surprisingly cheap because it only pays out after your primary insurance is maxed out. You can often get $1M of extra coverage for $400 - $900 per year.
Frequently Asked Questions
Often no. Most umbrella policies only extend General Liability and Auto. Professional liability usually requires its own "excess" policy.
About This Guide
This guide was researched and written by the General Liability Guide editorial team to help business owners navigate the complexities of commercial insurance. We use data from industry leaders and regulatory filings to provide the most accurate estimates possible.