Business Insurance
Commercial Umbrella & Excess Liability.
Excess limits over GL, Auto, and Employer's Liability — sized to contracts, lenders, and balance-sheet exposure.
Umbrella vs excess — the practical difference
A true umbrella can drop down and respond to claims that the underlying policy excludes (subject to a self-insured retention). An excess policy follows the underlying form exactly — same exclusions, same conditions — and only kicks in when the underlying limit is exhausted. Most carriers use the term 'umbrella' loosely, so the actual form language matters more than the name on the declarations page.
How limits get sized
Limits are typically driven by the largest contract requirement, the lender or landlord covenant, or the fleet-exposure baseline. Most growing operating companies carry $5M–$25M in umbrella; firms with significant fleet, foot-traffic, product, or premises exposure layer higher. We benchmark against industry, contract requirements, and balance-sheet exposure rather than a flat-rate-of-revenue rule of thumb.
Underlying-limit requirements and the 'schedule of underlying'
Every umbrella requires specific minimum underlying limits — typically $1M/$2M GL, $1M Auto, and $1M Employer's Liability. If the underlying policy lapses, is reduced below the schedule, or doesn't include a coverage the umbrella expects (for example, hired and non-owned auto), the umbrella will not respond on that line. Maintaining the schedule of underlying is part of the renewal discipline.
Frequently asked questions
Does an umbrella cover D&O, EPLI, or Cyber?
Almost never. Those are management-liability and specialty lines, written on their own forms with their own excess towers. Umbrellas sit over GL, Auto, and Employer's Liability — the casualty stack — not over the management-liability lines.
How much umbrella do customers and landlords typically require?
Common asks are $5M for mid-market vendors, $10M+ for enterprise contracts, and $25M+ for any work involving heavy operations, large premises, or product distribution. We model the umbrella alongside the contract requirements, not in isolation.
Can the umbrella sit over a self-insured retention or captive?
Yes — that's a common structure once primary premium gets large enough to justify retained risk. We coordinate the umbrella attachment point with the SIR or captive-retention layer carefully so there is no gap between layers.
What happens if our underlying policy carrier changes mid-term?
We notify the umbrella carrier and re-issue the schedule of underlying so the limits, forms, and policy numbers all reconcile. Failing to do that is one of the most common reasons umbrella claims get contested.