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Commercial Umbrella Insurance

What is Commercial Umbrella Insurance?

Commercial umbrella insurance, also known as commercial excess liability, is a type of insurance policy that helps cover costs that exceed certain policy liability limits. In other words, this is like an extension of liability coverage over your primary liability limits, such as your General Liability policy.  

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How does a Commercial Umbrella Insurance policy work?

A commercial umbrella insurance policy acts as an extension to the limits of your primary insurance policies such as your general liability insurance and commercial auto insurance. Your primary policy limits would apply before the umbrella does.


*It is required to have a General Liability in order to purchase an umbrella policy.

Commercial Umbrella Insurance would help cover claims that include:

  • Legal Costs

  • Medical Bills

  • Bodily Injury Claims

  • Judgements & Settlements

  • Damage to Property of Others

Commercial Umbrella Insurance is usually offered in coverage limits from $1,000,000 to $15,000,000.

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Who needs a Commercial Umbrella Insurance policy ?

At TexPro Insurance we advise any business to have a commercial umbrella insurance policy , however some business may have a more direct need for these policies.

  • If your business is more central around interacting with clients and customers in person, this can pose a higher liability risk. 

    • For example: A store with 500 people coming in per day could pose a high risk of liability compared to a store with 5 people coming in.​

  • If your employees use machinery or heavy equipment, this may pose a higher risk of liability.

If you think your business could be subject to excess liability risks, it is essential to discuss this with your insurance advisor. Please contact us at TexPro for more information.

How much is a Commercial Umbrella Insurance policy

There are many different factors that can determine the cost of a commercial umbrella insurance policy. This can include:

  • Underlying coverage limits

  • Type of Business

  • Size of your Business

Different business are exposed to different types of risk. For those that are involved in riskier types of operations, they will be subject to higher commercial umbrella insurance costs.

Commercial Umbrella Insurance example?

A customer comes into your store where they slip and fall, injuring themselves. They decide to sue you for $1.5 million in damages, however your General Liability Policy only covers up to $1 million. If you have an umbrella policy, this would kick in to cover the additional liability cost difference. 

As you can see, the value of purchasing a commercial umbrella insurance policy can protect you and your business against very large financial claims. With the legal world and compensations in the modern era, people are looking to press for as much as they can. Having this type of policy can bring you peace of mind, knowing your business has an extra layer of cushion.

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