So, by now the business has obtained range of primary liability coverages to respond to 3^rd party legal liability claims, including general liability, auto liability, employer’s liability, and professional liability. While these primary liability coverages are in good shape, the limits of coverage are relatively small (e.g. $1,000,000).

As your business grows, so too does the liability exposure, and you will likely need to consider increasing your limits of liability coverage at some stage to properly protect your operations. Many business owners also start encountering contracts with customers and suppliers requesting higher limits of liability coverage. In many cases, your primary insurer may not be able to increase the limit of coverage to what you require. Excess Liability or Umbrella Liability coverage is needed to fill this requirement.

While excess liability and umbrella liability are not quite the same, the same principle of increased commercial liability coverage applies. Excess liability policies are negotiated when you only require coverage on top your underlying general liability policy. Umbrella liability policies tend to be broader in scope, and sit across multiple underlying liability exposures including general liability, auto liability, employer’s liability, employee benefits liability, and in some cases even professional liability.

For more information about obtaining a commercial umbrella, we encourage you to contact Michael by phone at 310-414-2100 ext. 1003, or by email at .