What Is an Umbrella Policy — and Do I Need One?

An umbrella policy adds an extra layer of liability protection above your existing policies. Learn when it's worth it and how much it costs.

Coverage Explained | 4 min read | 2026-03-01

Your GL policy has limits. When a claim exceeds them, an umbrella policy picks up where your primary coverage stops. Here's how it works and who needs one.

A commercial umbrella policy provides additional liability coverage above the limits of your underlying policies — typically general liability, commercial auto, and employers' liability (the liability component of workers' comp).

In This Article

• How an Umbrella Policy Works
• What It Covers (and What It Doesn't)
• Who Needs One
• What It Costs
• The Conversation Most Agents Skip

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