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Umbrella Liability Insurance
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What is umbrella liability insurance?

Umbrella / excess liability insurance icon
Umbrella / excess liability insurance

Umbrella liability insurance, also called excess liability insurance, boosts the protection of your general liability, employer’s liability, or commercial auto insurance policies.

Does umbrella liability insurance make sense for your tech company?

If your business sees a large amount of foot traffic or deals with other liability risks, umbrella insurance may cost less than increasing the limits of the underlying policy. Umbrella liability insurance extends the limits of an existing liability policy in $1 million increments to provide coverage for the most expensive lawsuits.

This policy can provide additional coverage for your tech company’s:

You cannot purchase umbrella insurance for your tech company’s errors and omissions insurance policy.

What does umbrella liability insurance cover?

The cost of a lawsuit can escalate quickly after an incident such as a client injury or a vehicle accident.

If any incident covered by your general liability, employer's liability, or commercial auto insurance exceeds your policy limit, commercial umbrella insurance takes care of the extra costs. This includes medical bills, lawsuits over property damage, and the like.

Learn more about umbrella liability insurance coverage.

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Examples of umbrella coverage

Here are a few scenarios where it pays for a business owner to supplement liability coverage:

  • A client is seriously injured at your office
  • An employee is involved in a serious auto accident while on the job
  • A competitor sues over trademark infringement
  • Your client contract requires umbrella liability insurance

Does your tech company need a commercial umbrella policy?

In the past, only large tech companies purchased umbrella liability insurance. Today, more small businesses are investing in this policy due to the escalating cost of lawsuits. This policy is right for businesses that:

  • Need more protection and want to avoid the higher cost of increasing the policy limit of your liability insurance compared to purchasing an umbrella policy
  • Are required to carry a high liability policy limit to work with a certain client
  • Have high liability risks, such as operating a storefront
  • Want to cover exclusions in your existing liability policies

Umbrella liability insurance protections

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Home-based IT business

General liability insurance: A big business sues you for copyright infringement and the damages exceed your policy limit.

Employer’s liability insurance: An employee blames your business for a work injury and the medical bills cost more than your regular policy limit.

Commercial auto insurance: Your business vehicle is involved in a crash where someone needed serious medical attention and the medical bills exceed your policy limit.

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IT freelancer

General liability insurance: Before you can accept a project working with expensive equipment, the client asks you to increase your policy limit.

Commercial auto insurance: You get into an accident on your way to visit a client and the property damage exceeds your regular policy limit.

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Small IT business

General liability insurance: Your busy business fields a high number of customer injury lawsuits, which max out your regular policy limit.

Employer’s liability insurance: An employee, claiming they developed a health problem after years of work, seeks damages that exceed your policy limit.

Commercial auto insurance: Your business operates a fleet of vehicles and the costs of a high number of minor accidents start adding up.

Umbrella liability insurance costs

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Tech companies pay a median of $101 per month for umbrella liability insurance purchased through TechInsurance.

Your costs will vary depending on:

  • Business size
  • Location of your business
  • The risks of your profession
  • Prior claims history
View Umbrella Liability Costs
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