Often, yes. Most umbrella insurers will not sit on top of a general liability policy below $1,000,000 per incident and $2,000,000 per year, an auto policy below $1,000,000, or a workers comp policy with only $100,000 for an employee suing you. If your policies are under those numbers, raising them is usually a quick, low cost fix that happens right before the umbrella starts. Who this is for: contractors told their limits are too low for an umbrella.
The short version
- Umbrella insurers set minimum limits for the policies underneath. Fall short and they will not quote.
- The common minimums are $1,000,000 per incident and $2,000,000 per year on general liability, $1,000,000 on auto, and $500,000 or $1,000,000 on the workers comp coverage that pays when an employee sues you.
- That workers comp piece is the one most small contractors miss. A standard policy comes with only $100,000.
- Raising a limit is usually a phone call. Illustratively, $100 to $500 a year for general liability, and $150 to $400 per vehicle on auto.
- The raise must take effect on or before the day the umbrella starts, so your broker lines up both dates.
Why does the umbrella insurer care about my other policies?
An umbrella is a second layer of coverage above your general liability, auto, and workers comp liability policies. It starts paying where those stop. Say the insurer prices the umbrella expecting your general liability to pay the first $1,000,000. If your policy only pays $500,000, the umbrella is on the hook $500,000 sooner than it planned.
So every umbrella carries a page listing each policy underneath it and the limit that policy has to have. Insurers call it the underlying schedule. The insurer will not quote unless your real limits meet it. If you let a limit drop later, most umbrella policies make you pay the gap yourself first.
What limits do umbrella insurers usually require underneath?
| Policy | Common minimum the umbrella wants | What many small contractors have | What to do |
|---|---|---|---|
| General liability | $1,000,000 per incident, $2,000,000 per year, and $2,000,000 per year for claims after the job is finished | Usually the same, but some carry $1,000,000 per year | Raise the yearly limit to $2,000,000 |
| Commercial auto | $1,000,000 for one accident, covering injury and property damage together | Often $500,000, or split limits like $250,000 per person | Raise to $1,000,000 on every vehicle |
| The workers comp coverage that pays if an employee sues you | $500,000 or $1,000,000 for each of its three parts | The standard $100,000 each accident, $500,000 policy limit for disease, $100,000 each employee | Raise to $1,000,000 on all three |
| Cover for vehicles you rent or your employees drive for work | $1,000,000, if you own no vehicles | Often missing entirely | Ask for a small standalone policy, or an endorsement on your general liability if your insurer offers one. Some umbrella insurers accept it only on an auto policy |
The workers comp piece catches people. Nearly every policy is sold with the standard $100,000 limit, and almost nobody raises it until an umbrella insurer asks. Four states work differently. In North Dakota, Ohio, Washington, and Wyoming, workers comp comes from a state fund and the policy has no employee suit coverage at all. Contractors there buy that piece separately, often on the general liability policy, before an umbrella insurer will list it. See workers comp versus employers liability.
What does it cost to raise my limits?
The figures below are illustrative for a small contractor with a clean record. Your trade, payroll, vehicle count, state, and insurer move them.
| Change | Illustrative yearly cost |
|---|---|
| General liability yearly limit from $1,000,000 to $2,000,000 | $100 to $500 |
| Auto from $500,000 to $1,000,000 | Roughly 10 to 20 percent of the auto premium, often $150 to $400 per vehicle |
| Employee suit coverage from $100,000 to $1,000,000 | $100 to $400, often a small percentage of the workers comp premium |
| Adding $1,000,000 for rented and employee vehicles | $100 to $350 |
Compare that to the umbrella itself, which often runs $1,000 to $5,000 for a $1,000,000 layer, illustrative. The raises underneath are a small part of the bill, and they buy you coverage on their own.
Can I buy the umbrella first and raise the limits later?
No, and you do not want to. The umbrella insurer quotes on the condition that the limits are in place. The change to each policy underneath (an endorsement, usually one extra page) has to take effect on or before the umbrella start date. Your broker asks each insurer for the change and puts the umbrella in place the same day.
What if my insurer will not raise a limit?
It happens, most often on auto for a driver with a poor record. You have three moves. Move that policy to an insurer that will write the limit. Find an umbrella insurer that accepts the lower limit, at a higher price. Or buy a small extra layer to fill the gap, which usually costs more than fixing the policy underneath. See why umbrella insurers say no.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A hardscape contractor in Florida with nine employees and five trucks wins a $610,000 city park contract requiring a $2,000,000 umbrella. He carries $1,000,000 per incident and $2,000,000 per year on general liability, $500,000 on auto, and the standard $100,000 for an employee suing him.
What went wrong: He tries an online umbrella quote twice. Both come back declined with one line: underlying limits do not meet minimum. Nobody says which limit. Six days pass.
What it cost: A broker spots it in ten minutes. Auto goes to $1,000,000 for about $1,150 a year and the employee suit limit to $1,000,000 for about $210, both illustrative. The $2,000,000 umbrella then quotes at $3,400, also illustrative, for a total near $4,760, and the certificate goes out on day nine instead of day three.
The fix: The decline was never about the business. Check your auto and workers comp limits before you shop the umbrella.
Frequently asked questions
Q: Do I need to increase my other policy limits before I can buy umbrella insurance?
Often, yes. Umbrella insurers require minimum limits underneath: usually $1,000,000 per incident and $2,000,000 per year on general liability, $1,000,000 on auto, and $500,000 or $1,000,000 for an employee suing you.
Q: My workers comp policy says $100,000. Why is that a problem for the umbrella?
That $100,000 is the part of workers comp that pays if an employee sues you outside the workers comp system. The umbrella sits above it, so the insurer wants $500,000 or $1,000,000 there. It is the cheapest fix on the list.
Q: I work in Ohio and my workers comp comes from the state. Does that change things?
Yes. In North Dakota, Ohio, Washington, and Wyoming the state fund policy has no employee suit coverage at all. You buy that piece separately, often on your general liability policy, before an umbrella insurer will list it.
Q: Do I need coverage for rented vans and employees driving their own cars?
If you have no company vehicles, many umbrella insurers still want $1,000,000 of coverage for vehicles you rent or your employees drive for work. It is inexpensive to add.
Q: What happens if my limits drop below what the umbrella lists?
Most umbrella policies say you pay the difference yourself before the umbrella pays. Keep every policy at the limit the umbrella lists, all year, and tell your broker before you change one.
Q: Do I have to raise limits on policies the umbrella will not sit over?
No. Only the policies listed on the umbrella have to meet its limits. But the umbrella will not pay above a policy left off that list, so make sure the list matches your contract.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Checking a contractor's limits against an umbrella insurer's minimums, and raising what needs raising before the umbrella starts, is a routine part of what we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.