How Much Umbrella Insurance Do I Need?
Umbrella insurance can cover claims that exceed the limits of an underlying business liability insurance policy. If you’re wondering, “How much umbrella insurance do I need?” or “Is umbrella insurance worth it?” read on for answers.

Understanding Commercial Umbrella Insurance Coverage
Do you have questions like, “How much umbrella insurance do I actually need?” Before deciding on how much commercial umbrella insurance coverage you need, it’s important to understand how a policy works.
Essentially, commercial umbrella insurance is coverage that increases the benefits of other liability policies. It can provide payment for claims that exceed the limits of those policies subject to its own limits.
Without umbrella insurance, you may have to pay for any costs beyond the limit of your liability policy out of your own pocket. This can include things like:
- Medical bills
- Repair costs
- Legal fees
As an example, let’s say your employee causes a significant injury to a client while working in their home. The court finds your business liable and orders you to pay $1,250,000 to the client. Your general liability policy has a $1,000,000 limit for this covered event, which means you’re stuck with paying the additional $250,000—that is, unless you have a commercial umbrella insurance policy with a limit of $250,000 or more.
If you have questions about how this type of insurance works, our experts in commercial umbrella insurance coverage are happy to answer them.
Determining the Right Limit for an Umbrella Insurance Policy
Exactly how much umbrella do you need? There’s no precise formula for choosing a limit. However, a licensed biBERK insurance expert can help you make your decision based on certain characteristics of your company and also the amount of coverage that similar businesses are carrying.
Also, while your primary concern should be having adequate business umbrella insurance, the cost of that coverage may also be a factor in your decision. You can get a fast, free, online umbrella insurance policy quote. Typically, the first $1 million of umbrella insurance will only cost your small business between $17 and $33 per month. And generally speaking, each additional $1,000,000 in coverage is less expensive than the last.
So, for example, if $1,000,000 in umbrella insurance were to cost $250 per year, the next $1,000,000 (for $2,000,000 total) might be only $200, for a total of $450. And, keep in mind that buying an umbrella insurance policy directly from biBERK can save you up to 20% over other providers, since there is no middleman or broker involved.
What Isn’t Covered by Business Umbrella Insurance?
Generally speaking, a business umbrella insurance policy provides coverage for any incident that an underlying liability policy covers. But there are certain exclusions, including:
- Damage to your business property. Umbrella coverage doesn’t apply if you damage your own property.
- Intentional or expected damage. If you cause damage on purpose or should have known that your actions would cause damage, your business umbrella insurance won’t cover the cost.
Our licensed insurance experts can provide more details on what’s covered and what’s not covered by our business umbrella insurance policies.
How Long Does It Take for Commercial Umbrella Insurance to be in Effect?
You can get a commercial umbrella insurance policy quote from biBERK online and then buy your policy in a matter of minutes. The coverage start date is determined at that time, and can be as soon as a day or two later in many cases. And if you ever need to file a commercial umbrella insurance claim or manage your policy, you can do that online as well.
Umbrella insurance is powerful protection that can give you added peace of mind regarding your company’s financial security should an incident occur. Whether you determine that $1,000,000, $5,000,000, or more in coverage is right for your business, you’ll be glad to know that exceeding the associated liability policy doesn’t have to create a huge financial burden.