Commercial Umbrella Insurance
A commercial umbrella extends your liability limits beyond what your underlying general liability, commercial auto, and employer's liability provide — essential for manufacturers facing large product, premises, or auto claims.
Commercial Umbrella for Manufacturers
A commercial umbrella sits on top of your primary liability policies and provides additional limits when a serious claim exceeds them. For a relatively modest premium, it can add $1M to $10M of protection above your general liability, commercial auto, and employer's liability coverage.
How It Works
1. Your general liability pays its limit — say $1M per occurrence 2. A serious product or premises claim results in a $3M judgment 3. The umbrella covers the remaining $2M above the underlying policy
Without the umbrella, that excess comes directly out of your company's assets.
Why Manufacturers Need Higher Limits
- Product exposure can produce catastrophic, multi-plaintiff claims
- Delivery and fleet operations create severe auto-accident potential
- Large customer contracts increasingly require $5M+ combined limits
- National distribution multiplies the number of people who use your product
Cost vs. Protection
Because the umbrella only pays after your primary policies are exhausted, it's one of the most cost-effective ways to buy meaningful protection. For manufacturers that supply national retailers or distributors — many of whom contractually require high combined limits — it's often a requirement as well as a smart safeguard.
What's Covered
Frequently Asked Questions
How much umbrella coverage does a manufacturer need?
It depends on your product exposure, fleet size, and customer contracts. Many manufacturers start at $1M–$5M; those supplying national retailers or distributors often need $5M–$10M to meet contractual requirements. We size it to your real exposure and your contracts.
What does a commercial umbrella not cover?
An umbrella extends liability coverage only — it does not cover your property, equipment, or product-recall costs. Those are handled by commercial property, equipment breakdown, and product recall insurance. The umbrella sits over your liability policies (GL, auto, employer's liability).