Commercial Umbrella Insurance
Commercial Umbrella Insurance for Manufacturers
When a catastrophic product liability claim exceeds your primary insurance limits, a commercial umbrella policy provides the additional protection that can mean the difference between surviving the claim and losing your business.
How Commercial Umbrella Insurance Works
A commercial umbrella policy provides an extra layer of liability coverage above and beyond your primary insurance policies. It kicks in after your primary policy's limits are exhausted — providing a financial safety net for catastrophic claims.
Example: How Umbrella Coverage Stacks
Product Liability Claim$4,500,000
CGL Policy Pays (limit)$1,000,000
Umbrella Policy Pays ($3M excess)$3,000,000
Remaining Balance (your deductible)$500,000
Why Manufacturers Need Umbrella Coverage
Product defect claims regularly reach $5M–$50M
Mass tort cases (multiple claimants) can exceed primary limits quickly
Major retailers require vendors to carry $5M+ in total liability limits
Defense costs alone can exhaust primary policy limits
Umbrella coverage is relatively low cost per million of protection
Many umbrella policies also broaden your underlying coverage
Underlying Policies Covered by Umbrella
A commercial umbrella typically sits above several underlying policies:
Commercial General Liability
Employer's Liability
Commercial Auto Liability
Products Liability
How Much Umbrella Coverage Do Manufacturers Need?
$2M–$5M umbrella
Recommended
Small Manufacturers
Under $5M revenue · Basic protection above $1M primary
$5M–$10M umbrella
Recommended
Mid-Size Manufacturers
$5M–$50M revenue · Meets major retailer requirements
$10M–$25M+ umbrella
Recommended
Large Manufacturers
$50M+ revenue · May use excess layers beyond single umbrella
Add Umbrella Coverage to Your Program
Extra liability protection for manufacturers. Get a free quote on umbrella coverage today.
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