Liability

Umbrella & Excess Liability Insurance

Extra liability limits above your general liability, commercial auto and employers liability policies — often how businesses meet higher contract or lease requirements.

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An umbrella or excess liability policy adds limits on top of your main liability policies. The policies underneath it — usually general liability, commercial auto and the employers liability part of workers' compensation — are called the underlying policies. When a claim uses up an underlying policy's limit, the umbrella or excess policy can respond for the amount above it, up to its own limit.

Higher limits are usually driven by contracts. A general contractor, shipper, freight broker, landlord or public entity may ask for a total limit higher than the underlying policies are typically written for, and an umbrella or excess policy is often how businesses get there.

How the policies fit together matters as much as the total. We help businesses across the U.S. check whether the umbrella follows the terms of the underlying policies, whether it can respond to claims they don't, and whether its exclusions line up with them — not just the top limit.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Above general liability

Additional limits above your general liability per-occurrence and aggregate (total) limits, often including claims from completed work and products.

Above commercial auto liability

Additional limits above your commercial auto liability. For trucking, availability and limits depend heavily on fleet size, radius, cargo and safety record.

Above employers liability

Limits above the employers liability part of your workers' compensation policy, which many contracts require.

Follow-form excess

A policy that generally follows the terms, conditions and exclusions of the underlying policy, adding limits without broadening coverage.

Umbrella drop-down

Some umbrella forms can respond to certain claims the underlying policies don't address, after you pay a self-insured retention — an amount you pay first, similar to a deductible. The scope varies widely by form.

Defense costs

Many umbrella forms pay defense costs in addition to the limit, while some excess forms include defense within it, which reduces the amount left for a settlement or judgment. The wording varies by policy.

What to watch for

Underlying limits below the umbrella's required minimums, which can leave a gap you would have to pay yourself.
Underlying policies missing from the umbrella's schedule, such as a newly added auto policy or a separate liability policy.
Umbrella exclusions broader than the underlying policies, which can leave contract-required exposures without the extra limits.
Contracts requiring the umbrella to follow form, apply on a primary and non-contributory basis, or name the other party as additional insured.
Umbrella and underlying policies renewing on different dates, which can create mismatched terms or gaps.
Aggregate limits shared across all locations and projects that can be used up faster than expected.

What affects price and eligibility

Underlying exposures: type of operations, vehicles, payroll and revenue
The limit requested, and whether the policy sits directly above the underlying policies or above another umbrella or excess policy
Underlying limits and the terms of the underlying policies
Claims history across general liability, auto and workers' compensation
Fleet size, vehicle types, radius and driver records for auto exposure
Contract requirements such as per-project aggregates or broad additional insured wording

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

Declarations pages for your current general liability, commercial auto and workers' compensation policies
Loss runs (claims history reports) for each underlying policy for the last 3–5 years, if you've been insured before
Contracts or leases that list the required limits and wording
Your vehicle list and number of drivers, when commercial auto is one of the underlying policies
A description of your operations, with annual revenue and payroll
Your current umbrella or excess declarations and schedule of underlying insurance, if you have one

Start with basic business information. If more detailed driver information is needed, we'll arrange an appropriate way to collect it.

Written by ALP Insurance

Who typically needs it

Contractors whose general contractor or owner contracts require limits above their general liability and auto policies
Trucking and transportation companies with shipper, broker or lease requirements for higher auto limits
Businesses with fleets or employees who drive regularly for work
Landlords and property owners with tenant, lender or association requirements
Manufacturers and distributors with products-completed operations exposure
Businesses that want more protection against a severe lawsuit than their underlying limits provide

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

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Industry guides

Umbrella & Excess FAQs

What is the difference between umbrella and excess liability?

Excess liability generally follows the terms of the underlying policy and only adds limits. An umbrella can also follow form, but some umbrella forms respond to certain claims the underlying policies don't, after a self-insured retention. Many policies blend the two, so the actual form matters more than the label.

What underlying limits do I need?

The umbrella insurance company sets minimum limits for the underlying general liability, auto and employers liability policies. If your underlying limits are lower, you may be responsible for the difference, so we line them up before coverage is put in place.

Can I combine policies to reach a higher limit?

Yes. Larger limits are often built in layers: a first (lead) umbrella sits on the underlying policies, and one or more excess policies sit above it. This stack is sometimes called a tower, and because each layer has its own terms, they need to be reviewed together.

Does an umbrella respond to professional or cyber claims?

Typically not. Professional liability, cyber and employment practices are usually excluded and need their own policies, which can have separate excess limits.

Do contract-required umbrellas need special endorsements?

Often. Contracts may require the umbrella to name the other party as additional insured, follow form, or apply on a primary and non-contributory basis. We compare the contract with the policy before certificates are issued.