Business Umbrella Insurance: Extra Liability Protection for Your Company

What is Business Umbrella Insurance?

Business Umbrella Insurance provides additional liability coverage beyond the limits of your standard business policies. When claims exceed your primary policy limits, umbrella coverage kicks in to protect your company’s assets and future earnings.

Key Benefits:

✔ Extends coverage on multiple underlying policies
✔ Protects against catastrophic lawsuits
✔ Covers legal defense costs
✔ Affordable way to significantly increase protection

How Umbrella Insurance Works

Example Scenario:
Your business is sued for $2 mi ll i o na f t er a ser i o u s a cc i d e n t, b u t yo u r g e n er a ll iabi l i t y p o l i cyo n l yco v ers$ 1 million. Your $1 mi ll i o n u mb re ll a p o l i cy w o u l d co v er t h ere mainin g$ 1 million.

Policies It Can Extend:

Commercial General Liability
Commercial Auto
Employer’s Liability
Hired/Non-Owned Auto

Who Needs Business Umbrella Insurance?

🛡️ Businesses with significant assets to protect
🚗 Companies with vehicle fleets
🏢 Businesses open to the public
👥 Employers with many staff members
💼 High-net-worth professionals
🌐 Companies in litigious industries

Even small businesses can face multi-million dollar lawsuits!

What Business Umbrella Insurance Covers

1. Excess Liability

Pays when claims exceed underlying policy limits
Covers judgments and settlements

2. Additional Protections

Personal Injury (libel, slander, false arrest)
Advertising Injury
Worldwide Coverage (for international operations)

3. Legal Defense Costs

Attorneys’ fees
Court costs
Investigation expenses

Typical Coverage Limits

Business Size	Recommended Umbrella Limit
Small Business	$1-2 million
Medium Business	$2-5 million
Large Business	$5-10 million+

Pro Tip: Coverage typically starts at $1 mi ll i o nan d in cre m e n t s b y$ 1 million.

Cost Factors

Your premium depends on:

Type of business
Number of employees
Revenue size
Claims history
Underlying policy limits

Average Costs:

$1 mi ll i o n p o l i cy :$ 500-$1,500/year
Each additional $1 mi ll i o n :$ 200-$500/year

Claims Examples Where Umbrella Helps

💼 Customer Injury: $2.5 M se ttl e m e n t f or d i s ab l in g f a ll 🚛 * * A u t o A cc i d e n t * * :$ 3M judgment from multi-vehicle crash
🏭 Product Liability: $4.5 M c l aim f or d e f ec t i v e p ro d u c t 💻 * * D a t a B re a c h * * :$ 1.8M in damages from cyber attack

How to Get Umbrella Coverage

Maintain adequate underlying policies (required)
Choose appropriate umbrella limit
Work with commercial insurance specialist

Get Your Umbrella Protection Today

✅ Free Policy Review of your current coverage
✅ Multiple Carrier Options for competitive rates
✅ Fast Application Process