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Commercial Umbrella Insurance for Contractors

Comprehensive commercial umbrella insurance providing excess liability coverage from $1M to $10M. Protect your contracting business with additional coverage layers.

Commercial Umbrella Insurance – Enhanced Protection for Your Contracting Business

Commercial umbrella insurance provides an additional layer of liability protection for contractors, extending coverage beyond the limits of your primary insurance policies. In today's litigious environment, this extra protection is essential for safeguarding your business assets and ensuring financial security.

Why Contractors Need Umbrella Coverage

Asset Protection

  • Protects business and personal assets from large liability claims
  • Covers defense costs even when claim is groundless
  • Provides peace of mind for high-risk construction operations

Contract Requirements

  • Many large projects require umbrella coverage
  • Demonstrates financial responsibility to clients
  • Competitive advantage in bidding situations

Cost-Effective Coverage

  • Relatively inexpensive compared to primary policies
  • Significant coverage amounts at affordable premiums
  • Protects against catastrophic loss scenarios

Coverage Features

Excess Liability Protection Commercial umbrella insurance responds when underlying policy limits are exhausted, providing additional coverage for:

  • Bodily injury claims exceeding primary limits
  • Property damage beyond general liability coverage
  • Personal and advertising injury claims
  • Products-completed operations exposures

Broader Coverage Territory Unlike some primary policies, umbrella coverage typically includes:

  • Worldwide territory coverage
  • Coverage for operations outside the United States
  • Protection for international project work

Defense Cost Coverage

  • Legal defense costs included in coverage
  • Expert witness and investigation expenses
  • Settlement negotiations and court costs

Coverage Limits and Structure

Available Limits:

  • $1 million minimum coverage
  • $2 million standard for mid-size contractors
  • $5 million for larger operations
  • $10 million+ for major contractors

Underlying Requirements: Most umbrella policies require minimum underlying limits:

  • General Liability: $1,000,000 per occurrence
  • Commercial Auto: $1,000,000 combined single limit
  • Employers Liability: $1,000,000

Industries We Serve

General Contractors

  • New construction and renovation projects
  • Multi-million dollar project exposures
  • Subcontractor liability coordination

Specialty Contractors

  • Roofing and exterior contractors
  • Electrical and plumbing specialists
  • HVAC and mechanical contractors

Heavy Construction

  • Highway and infrastructure projects
  • Industrial and commercial construction
  • Equipment-intensive operations

Claims Scenarios

Typical Umbrella Claims:

  • Multi-vehicle accidents involving company vehicles
  • Serious jobsite injuries exceeding $1M in damages
  • Property damage to adjacent buildings
  • Products liability for defective materials

Real-World Example: A contractor's equipment causes a gas line rupture, resulting in evacuation costs, business interruption, and property damage totaling $3.2 million. The general liability policy covers the first $1 million, while the umbrella policy covers the remaining $2.2 million.

Getting Coverage

Underwriting Process:

  • Review of underlying insurance coverage
  • Assessment of business operations and exposures
  • Analysis of claims history and safety programs
  • Evaluation of project types and contract requirements

Required Documentation:

  • Current insurance declarations pages
  • Business financial statements
  • Loss runs for past 5 years
  • Safety program documentation

Pricing Factors

Cost Considerations:

  • Underlying policy limits and deductibles
  • Business operations and industry classification
  • Geographic territory and project locations
  • Claims history and safety record
  • Coverage limits selected

Typical Pricing:

  • $1M umbrella: $300-800 annually
  • $2M umbrella: $500-1,200 annually
  • $5M umbrella: $800-2,000 annually

Contact Our Experts

Our experienced commercial insurance specialists can help you determine the right umbrella coverage for your contracting business. We work with A-rated carriers to provide competitive pricing and comprehensive protection.

Get Your Quote Today:

  • Free consultation and risk assessment
  • Competitive quotes from multiple carriers
  • Expert guidance on coverage limits
  • Seamless integration with existing policies

Ready to protect your business with commercial umbrella insurance? Contact Contractor's Choice Agency today for a customized quote and expert advice on structuring your liability protection program.

Coverage Options

Coverage Limits

  • $1,000,000
  • $2,000,000
  • $5,000,000
  • $10,000,000

Deductible Options

  • $0
  • $1,000
  • $5,000
  • $10,000

Pricing

Varies by coverage

Key Features

  • A+ Rated Insurance Carriers
  • Excess liability coverage from $1M to $10M
  • Broadens coverage beyond primary policies
  • Defense cost coverage included
  • Worldwide territory coverage
  • Flexible payment plans available

Frequently Asked Questions

What is commercial umbrella insurance?

Commercial umbrella insurance provides additional liability coverage above your primary general liability, commercial auto, and other liability policies. It kicks in when your primary policy limits are exhausted.

How much umbrella coverage do contractors need?

Coverage needs vary by business size and risk exposure. Most contractors start with $1-2 million in umbrella coverage, with larger contractors often requiring $5-10 million or more.

Does umbrella insurance cover all my policies?

Umbrella policies typically cover general liability, commercial auto, and employers liability. Some exclusions may apply, and certain coverages may require specific underlying limits.

What are the requirements for umbrella coverage?

You must maintain specific minimum limits on your underlying policies (typically $1M general liability, $1M commercial auto). The umbrella carrier will specify these requirements.

Ready to Get Protected?

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