How it works
A primary general liability policy usually has a $1 million per-occurrence limit. A serious injury or a building-wide water or fire loss can exceed it. Excess liability sits above the primary policy and pays once that limit is used up. An umbrella can also cover some claims the primary policy does not, subject to its own terms. An excess policy generally follows the primary policy's terms.
Umbrella vs excess
| Umbrella | Excess | |
|---|---|---|
| Sits above | GL, auto and employer's liability | One or more underlying policies |
| Broader than the primary? | Can cover some gaps in the underlying policy | Usually follows the underlying policy |
| Needs underlying policies? | Yes, at required minimum limits | Yes |
Questions to ask before you buy
- Can the excess sit over a primary policy written by another carrier, or only over its own? Some excess markets only follow their own underlying policy
- Which underlying policies must be scheduled: GL, auto and employer's liability?
- Does it have exclusions for residential tract, condo or wrap-up work, or for work in certain trades? These are common for contractors
- Does the contract require the owner or GC as additional insured on the excess, and primary and non-contributory wording?
- How much limit does the contract actually require? Buy the required limit, then compare the cost of the next million
Who needs it
Contractors who bid larger commercial or public jobs, work for developers or property managers, run vehicles on the road all day, or have contracts that set limits above $1 million. A single large claim can otherwise come out of the company's assets.
Get an excess quote
Send us your current GL, auto and employer's liability declarations pages and the contract limit requirement. We will place the excess with a carrier that fits your trade. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
What is the difference between umbrella and excess liability?
An umbrella can cover some claims the primary policy excludes, and sits above several policies. Excess generally follows the terms of the policy beneath it.
How much umbrella coverage does a contractor need?
At least what your contracts require. Many commercial and public contracts ask for $2 million to $5 million. Higher limits make sense for larger or riskier work.
Does umbrella cover workers' comp?
No. It can sit above employer's liability, but workers' compensation benefits are separate.
Can I buy an umbrella from a different company than my GL?
Sometimes. Some excess carriers will only sit over their own underlying policy, so ask before you buy.