Umbrella & Excess Liability Insurance
Extra liability protection when your underlying policies are not enough.
Umbrella and excess liability insurance provides an additional layer of coverage above your general liability, commercial auto, and employers liability policies. When a catastrophic claim exceeds your primary coverage limits, this additional layer kicks in to protect your business assets from devastating judgments.
Get an Umbrella/Excess Liability Quote
Surprisingly affordable protection against catastrophic claims
How Umbrella & Excess Coverage Works
Sits Above Your Underlying Policies
Umbrella and excess liability insurance provides an additional layer of protection that kicks in after your primary policies (general liability, commercial auto, employers liability) are exhausted. Think of it as a safety net above your safety nets.
Kicks In When Limits Are Exhausted
If a claim exceeds your underlying policy limits, the umbrella/excess policy pays the difference up to its own limit. For example, if you have $1 million in general liability and face a $2 million judgment, your umbrella covers the additional $1 million.
Covers Multiple Underlying Policies
One umbrella policy can provide excess coverage over your general liability, commercial auto, and employers liability all at once. This makes it incredibly cost-effective compared to increasing limits on each policy individually.
May Provide Broader Coverage
Some umbrella policies cover claims that your underlying policies exclude entirely (subject to a self-insured retention). This can fill gaps in your overall liability protection.
Umbrella vs. Excess Liability: What's the Difference?
While often used interchangeably, these coverages have important differences:
| Aspect | Umbrella | Excess |
|---|---|---|
| Coverage Breadth | May provide broader coverage than underlying policies—can fill gaps | Follows the exact terms of underlying policies—no gap-filling |
| Drop-Down Coverage | Can drop down for claims not covered by underlying but covered by umbrella | Only pays after underlying is exhausted—no drop-down |
| Self-Insured Retention | May require a self-insured retention for drop-down claims | Typically no SIR—just excess over underlying |
| Common Use | More common for small to mid-size businesses | More common for larger risks or to stack additional limits |
Which do you need? For most small to mid-size businesses, an umbrella policy provides the best value. For larger organizations or those with specialized needs, we may recommend excess liability or a combination. We will help you determine the right structure for your situation.
Policies Your Umbrella/Excess Covers
Your umbrella or excess policy stacks on top of these underlying policies:
General Liability
Scenario: Multiple people injured in an accident at your premises. Medical bills, lost wages, and legal fees exceed your $1M limit.
Coverage: Umbrella/excess pays the amount above your general liability limit.
Commercial Auto
Scenario: Your delivery driver causes a serious multi-vehicle accident with multiple injuries exceeding your $1M auto liability limit.
Coverage: Umbrella/excess pays above your commercial auto limit.
Employers Liability
Scenario: An employee injury lawsuit results in a judgment exceeding your employers liability coverage.
Coverage: Umbrella/excess pays above your employers liability limit.
Note: Most umbrella policies require you to maintain certain minimum limits on your underlying policies (often $1 million per occurrence for general liability and auto). We will help you structure your coverage correctly.
Who Needs Umbrella/Excess Liability Insurance?
Any organization that cannot afford to lose everything in a single lawsuit. If a judgment exceeds your underlying policy limits, your assets—and potentially personal assets—are at risk.
Businesses with Significant Assets
Protect assets that could be seized in a lawsuit exceeding your underlying limits
Contractors & Construction
High-risk operations with potential for catastrophic injuries or property damage
Fleet Operations
Multiple vehicles on the road increase exposure to major auto accidents
Fire Departments & Emergency Services
High-speed responses and emergency operations create significant liability exposure
Municipalities & Public Entities
Large potential exposures require limits above standard policy maximums
Manufacturing
Product liability claims can result in multi-million dollar verdicts
Property Owners
Premises liability claims can be substantial, especially with multiple tenants
Any Growing Business
As you grow, your exposure to large claims grows too
Real Claims Examples
See how umbrella/excess coverage protects organizations in catastrophic scenarios:
Catastrophic Premises Injury
Scenario: A customer falls down stairs at your business, suffering a severe spinal injury. Medical bills, lost wages, and pain and suffering damages total $2.8 million.
Coverage: Your $1 million general liability pays first. Your $2 million umbrella covers the remaining $1.8 million. Without the umbrella, you would owe $1.8 million out of pocket.
Multi-Vehicle Auto Accident
Scenario: Your company vehicle runs a red light and causes a chain-reaction accident injuring five people. Total claims reach $3.5 million.
Coverage: Your $1 million commercial auto pays first. Your umbrella covers the additional $2.5 million. The umbrella literally saves your business.
Emergency Response Incident
Scenario: During an emergency response, apparatus is involved in an accident causing $4 million in combined bodily injury and property damage claims.
Coverage: After your automobile liability limit is exhausted, your excess liability covers the remaining damages up to your excess policy limit.
Severe Workplace Injury Lawsuit
Scenario: An employee injured on the job sues for gross negligence (not covered by workers comp). The jury awards $1.5 million.
Coverage: Your employers liability pays its $500,000 limit. Your umbrella covers the additional $1 million judgment.
What Affects Your Premium?
Umbrella and excess liability premiums are based on your overall risk profile:
Underlying Coverage Limits
Higher underlying limits may qualify you for lower umbrella rates since less risk transfers to the umbrella
Business Type & Risk Profile
Low-risk office businesses pay less than high-risk contractors or emergency services
Number of Vehicles
More vehicles means more auto liability exposure for the umbrella to cover
Employee Count
More employees increases employers liability exposure
Claims History
Prior claims, especially large ones, increase your umbrella premium
Umbrella Limit Selected
$1M, $2M, $5M, $10M or higher—cost increases with the limit but not proportionally
Why Umbrella Coverage Is Surprisingly Affordable
Many business owners are surprised at how little umbrella coverage costs for the protection it provides:
Leverage Effect
Adding $1 million in umbrella coverage typically costs far less than increasing your underlying limits by $1 million. You get more protection for less money.
Low Claims Frequency
Because umbrella policies only pay after underlying limits are exhausted, claims are relatively rare. This keeps premiums affordable.
Multi-Policy Coverage
One umbrella policy covers multiple underlying policies. Buying separate excess coverage for each would cost significantly more.
Real Cost Example
Many small to mid-size businesses can add $1-2 million in umbrella coverage for $500-$1,500 per year. That is remarkably affordable protection against business-ending lawsuits.
The Bottom Line: Umbrella and excess liability insurance is one of the best values in business insurance. For a relatively small premium, you get substantial protection against the claims that could otherwise devastate your organization. It is not a question of if you can afford this coverage—it is whether you can afford to be without it.
Get Your Umbrella/Excess Liability Quote
Protect your organization from catastrophic claims. This coverage is more affordable than most expect.
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Ryan Parrack Insurance
Serving Elkins, Buckhannon & Northern/Central WV
Elkins, WV