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Commercial Umbrella Insurance
Boost the protection of your current liability insurance.
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How much does commercial umbrella insurance cost?

Commercial umbrella insurance raises your policy limit in $1 million increments, providing your business with more compensation per claim. The limits you choose and your level of risk both affect the cost of this policy.

What do small businesses pay for commercial umbrella insurance?

For TechInsurance customers, the median cost of commercial umbrella insurance (excess liability insurance) is $101 per month or $1,212 per year. The median gives you a good estimate of what you can expect to pay since it eliminates high and low outliers.

A commercial umbrella policy boosts the policy limits on your underlying general liability insurance, employer's liability insurance, or hired and non-owned auto insurance (HNOA). You may need to purchase a certain amount of the underlying coverage before you can purchase umbrella insurance.

How policy limits affect insurance costs

Umbrella insurance typically increases the limit of the underlying policy in $1 million increments. The higher you raise your policy limit, the more you’ll end up spending on umbrella insurance.

Most TechInsurance customers purchase a $1 million / $2 million umbrella insurance policy. This includes:

$1 million per-occurrence limit. While the policy is active, the insurer will pay up to $1 million to cover any single claim.

$2 million aggregate limit. During the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.

When buying insurance, evaluate your potential liabilities to see if higher limits are worth the additional cost. A TechInsurance agent can help you secure the right amount of coverage for your risks.

How to save money on commercial umbrella insurance

Pay your annual premium upfront. You can usually pay your premium in monthly or annual installments. While it might be tempting to pay monthly premiums, consider paying the full premium instead. Many insurers offer discounts for businesses who pay this way.

Manage your business risks. If your business has no claims history, you’ll likely pay lower insurance rates. An effective way to reduce claims is to create a comprehensive risk management plan. For example, you might:

  • Remove physical hazards in your office
  • Develop thorough procedures for employees
  • Create rules for posting to your business’s social media accounts
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How to reduce liability claims against your business

Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.

What do small businesses pay for other policies?

Updated: April 14, 2022