What Is Commercial Umbrella Insurance?

Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. In other words, commercial umbrella insurance complements your other liability coverages by taking over when your other liability coverage limits have been reached.

For example, if your company is found liable for a customer’s injury at your place of business and you are sued for $1.5 million but only have $1 million in liability coverage, a commercial umbrella policy could make up for the $500,000 shortfall, subject to the policy’s coverage limits.  

Commercial umbrella insurance cost

A commercial umbrella insurance policy with $1 million in coverage can cost as little as a few hundred dollars a year. However, umbrella insurance isn’t offered as a stand-alone coverage; it works in conjunction with your other liability coverages, such as general liability insurance –which is your most expensive policy. 

What does commercial umbrella insurance cover?

Commercial umbrella insurance covers the same types of costs as business liability insurance, such as medical expenses, attorney fees and damages when your company faces a lawsuit.

Commercial liability insurance options

Besides commercial umbrella insurance, there are a number of other endorsements that could be appropriate for your business needs, including:

  • Hired and non-owned auto liability insurance, which provides auto liability coverage when employees rent or use their own cars for business use.
  • Employment practices liability insurance, which offers protection against employee lawsuits.
  • Directors and officers liability insurance, which covers defense costs and damages made against a director or officer.
  • Liquor liability insurance, which protects you against injury claims when alcohol is furnished during the course of your business operations.
  • Fire legal liability insurance, which provides coverage in the event you are found liable for a fire in the space you rent or lease. 

For more information about additional commercial liability insurance options, visit our business liability insurance page.

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Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.