Why You Need This Coverage

In today’s litigious society, standard liability limits often fall short of protecting your assets. With average umbrella claims now reaching $500,000 and nuclear verdicts becoming more common, excess and umbrella coverage provides crucial financial protection against catastrophic losses that could otherwise bankrupt your business or personal finances.

Essential Protection

These policies activate when your primary insurance limits are exhausted, providing additional layers of protection. With 78% of personal umbrella claims related to auto accidents and increasingly expensive settlements, this coverage is no longer a luxury – it’s a necessity.

Excess Coverage

• Follow-Form Protection: Mirrors the terms of your underlying policy exactly
• Single Policy Extension: Extends limits for one specific underlying policy
• Same Coverage Terms: No broader protection beyond existing policy scope
• Cost-Effective: Generally less expensive than umbrella policies
• Specific Use: Ideal when you only need higher limits for one particular exposure

Umbrella Coverage

• Broader Protection: Can cover claims excluded by underlying policies
• Multiple Policy Coverage: Extends over several underlying policies simultaneously
• Drop-Down Coverage: May cover certain losses from the first dollar
• Global Protection: Often includes worldwide coverage
• Self-Insured Retention: Typically includes a deductible (usually $10,000-$25,000)

Oil Production

Typical Excess Limits: $10M – $25M

High-risk operations require substantial coverage due to potential environmental impacts and expensive cleanup costs.

Fracking Production

Typical Excess Limits: $15M – $30M

Complex operations with environmental and community risks require higher coverage levels.

Mining Companies

Typical Excess Limits: $10M – $25M

Environmental liability and worker safety exposures drive higher coverage requirements.

Storage Tank Coverage

Typical Excess Limits: $5M – $15M

Underground and above-ground tanks present significant environmental liability exposure.

Pollution Liability

Typical Excess Limits: $5M – $25M

Environmental claims average $223 per month for small businesses, with coverage up to $25M available.

Sample Pollution Claims:

• $350,000: Battery storage fire with acid/lead contamination requiring EPA cleanup
• $175,000: Fuel oil tank leak requiring soil and groundwater remediation
• $150,000: Golf course waste disposal liability at bankrupt recycling facility

Typical Contractor Limits

• General Liability: $1M per occurrence, $2M aggregate (minimum)
• Umbrella/Excess: $5M – $20M (increasingly required by major projects)
• California 2025: Larger operations need additional $100K per person beyond first 5 employees
• Environmental Coverage: $2M – $5M for contractors handling hazardous materials

Common Required Endorsements

• CG 20 10: Additional Insured – Ongoing Operations
• CG 20 37: Additional Insured – Completed Operations
• Primary & Non-Contributory: Ensures contractor’s insurance pays first
• Waiver of Subrogation: Prevents insurance company from pursuing project owner
• Per Project Aggregate: Separate limits for each construction project

🌂 Name Origin

The term “umbrella” insurance comes from its broader protective reach – like an umbrella covers more area than just your head, umbrella policies provide wider coverage than underlying policies.

💰 Cost Efficiency

For just $380 per year on average, you can get $1 million in umbrella coverage – that’s about $1 per day for potentially life-saving financial protection!

🚗 Auto Connection

78% of personal umbrella claims and 87% of umbrella losses are related to auto accidents – your daily commute might be your biggest liability risk!

📈 Growth Rate

The US Personal Umbrella market generates $6.6 billion in premium annually, representing less than 1% of the total P&C market – plenty of room for growth!

⚖️ Legal Trend

Attorneys are increasingly googling defendants’ socioeconomic status to target cases with higher available limits – making umbrella coverage more crucial than ever.

🌍 Global Coverage

Unlike excess policies that typically mirror underlying coverage territories, umbrella policies often provide worldwide coverage – protecting you even on international vacations!