Commercial Umbrella Insurance in Texas
When a serious liability claim exceeds the limits of an underlying business insurance policy, commercial umbrella insurance may provide an additional layer of liability protection.
Lavon Insurance helps Texas businesses evaluate commercial umbrella and excess liability options based on their existing insurance, contracts, vehicles and business exposures.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance is designed to provide additional liability limits above certain underlying commercial insurance policies.
Your business may already carry general liability, commercial auto or other liability coverage. Those policies provide the primary layer of protection.
When an eligible covered claim exceeds the applicable underlying limit, a commercial umbrella policy may provide additional coverage up to its own policy limit.
Depending on the policy structure, umbrella coverage may also address certain liability exposures not covered by an underlying commercial general liability policy.
What Does Commercial Umbrella Insurance Do?
Additional Liability Limits
An umbrella policy may provide additional liability limits after an eligible underlying policy limit has been exhausted.
Above General Liability
Commercial umbrella coverage may sit above certain commercial general liability policies, depending on carrier requirements and policy structure.
Above Commercial Auto
Depending on the policy, commercial umbrella insurance may also provide excess liability protection above qualifying commercial automobile coverage.
Why Might a Business Need an Umbrella Policy?
A serious liability claim can potentially exceed the limits available under a primary business insurance policy.
Customer Injuries
A customer or visitor suffers a serious injury connected with your premises or business operations.
Property Damage
Business operations, products or completed work result in covered damage to another person’s property.
Commercial Vehicle Accidents
A serious covered accident involving a business vehicle creates liability greater than the available commercial auto liability limit.
Completed Operations
A liability claim arises after work has been completed, subject to the underlying and umbrella policy terms.
Contract Requirements
A customer, landlord or general contractor requires higher liability limits as a condition of doing business.
Large Liability Claims
One serious claim may involve damages that exceed the liability limit of a primary policy.
Commercial Umbrella Coverage Works With Underlying Policies
An umbrella policy generally supplements primary insurance rather than replacing it.
| Underlying Coverage | How It May Relate to an Umbrella Policy |
|---|---|
| Commercial General Liability | Provides primary liability coverage for eligible bodily injury, property damage, and personal and advertising injury claims. An umbrella may provide additional limits above the underlying CGL policy. |
| Commercial Auto Liability | Provides primary liability protection for eligible automobile exposures. A commercial umbrella may provide additional limits above qualifying auto liability coverage. |
| Other Liability Policies | Depending on the carrier and policy, additional liability policies may be scheduled or required as part of the umbrella program. |
Who Should Consider Commercial Umbrella Insurance?
There is no one-size-fits-all answer. Appropriate limits depend on the business’s operations, contracts, assets, vehicles, customers and other exposures.
Contractors
Contractors may face liability exposures from job sites, completed operations, customer property and commercial vehicles.
Businesses With Vehicles
Companies operating commercial vehicles may want to evaluate whether their underlying auto liability limits provide enough protection.
Customer-Facing Businesses
Retail, restaurant, office and other businesses with frequent visitors may have meaningful premises and operations liability exposures.
Businesses With Employees
As operations grow, liability limits may need to be reviewed along with locations, payroll and business activities.
Businesses With Contracts
Certain contracts may require specific liability limits that exceed the limits carried on primary policies.
Growing Texas Businesses
As a business expands, the liability limits that once made sense may need to be reevaluated.
Commercial General Liability vs. Commercial Umbrella
| Commercial General Liability | Commercial Umbrella |
|---|---|
| Provides primary liability coverage for eligible claims. | May provide additional liability limits above certain underlying policies. |
| Responds according to the limits and terms of the CGL policy. | Generally responds after applicable underlying limits or requirements have been satisfied. |
| Provides the primary layer of liability protection. | Supplements certain qualifying underlying liability coverage. |
Commercial Umbrella Insurance for Texas Businesses
Every business has a different risk profile. We start by understanding your existing insurance and the liability exposures your business faces.
Review Your Current Policies
We can review your underlying liability coverage and current limits before discussing additional coverage.
Understand Your Exposures
We consider business operations, vehicles, locations, customers, employees and contractual insurance requirements.
Explore Available Options
As an independent agency, Lavon Insurance can help you explore commercial insurance options from carriers available to your business.
Build a Broader Business Insurance Program
Commercial Umbrella Insurance FAQs
What is commercial umbrella insurance?
Is commercial umbrella the same as excess liability insurance?
Does commercial umbrella insurance replace general liability?
What does a commercial umbrella policy cover?
How much commercial umbrella insurance does a business need?
Can small businesses get commercial umbrella insurance?
Does Your Business Need Higher Liability Limits?
Let Lavon Insurance review your existing business insurance, underlying liability limits and exposures to help you explore commercial umbrella options.
Coverage, eligibility, limits, exclusions, underlying insurance requirements and availability vary by carrier and policy.