You reach $10,000,000 by stacking umbrella layers on top of your $1,000,000 general liability policy. That usually means two or three layers from two or three insurers, costing roughly $8,000 to $30,000 a year together (illustrative) and taking one to three weeks to put together. Who this is for: a contractor bidding public work, a hospital, a high rise, or an owner's project whose insurance exhibit asks for $10,000,000.
The short version
- An umbrella is a second layer of coverage that sits above your other liability policies, mainly general liability and auto. It is how contractors reach big limits.
- First check whether the contract wants $10,000,000 total, or $10,000,000 of umbrella above your general liability. The difference is $1,000,000.
- Few insurers give a small contractor $10,000,000 alone. A broker stacks layers, for example $5,000,000 plus $5,000,000, and each layer is written to follow the one below it.
- Illustrative cost for the umbrella layers is $8,000 to $30,000 a year, more for roofing, demolition, or New York work.
- Start early. Stacking layers needs one to three weeks and a full set of documents.
Does the contract want $10,000,000 total, or $10,000,000 of umbrella?
Read the insurance exhibit twice. Contracts ask for a big number in three common ways, and they are not the same.
| What the contract says | What you need | Total for one covered claim |
|---|---|---|
| "$10,000,000 per occurrence, which may be met by any combination of primary and umbrella" | $1,000,000 general liability plus a $9,000,000 umbrella | $10,000,000 |
| "Umbrella liability of $10,000,000" | $1,000,000 general liability plus a $10,000,000 umbrella | $11,000,000 |
| "General liability of $10,000,000 per occurrence" with no mention of umbrella | Ask. Most owners accept an umbrella on top, but the wording does not say so, so get it in writing. | $10,000,000 |
The middle version costs an extra $1,000,000 you may not need. If the contract is a template, ask whether "any combination" language is acceptable. Read more on whether an umbrella can satisfy a general liability limit.
Why does a big limit come from several insurers instead of one?
Most insurers that write small contractors cap their umbrella at $2,000,000 or $5,000,000. To reach $10,000,000, a broker builds a tower, meaning layers stacked one on top of another. The first umbrella layer sits over your general liability, auto, and employers liability (the part of workers comp that pays if an employee sues you). The next sits over the first. Each layer is written to follow the terms of the one below it, but a higher layer can add its own exclusions, so your broker compares every form before you buy.
A common $10,000,000 tower looks like this. Prices are illustrative and depend on trade, payroll, state, and claims history.
| Layer | Limit | Sits over | Illustrative yearly cost |
|---|---|---|---|
| General liability (you already have it) | $1,000,000 per occurrence (the most for one incident), $2,000,000 aggregate (the most for the year) | Nothing, it pays first | Already in your budget |
| Lead umbrella, insurer A | $5,000,000 | General liability, auto, employers liability | $5,000 to $15,000 |
| Second layer, insurer B | $5,000,000 | The lead umbrella | $3,000 to $15,000 |
| Total | $11,000,000 for one covered claim | $8,000 to $30,000 |
The top layer costs less per million than the lead, because it is less likely to ever pay. Roofing, demolition, structural steel, and New York work can double these numbers. See what umbrella insurance costs.
What does each layer need to say so the contract is met?
- Follow form. Each layer should follow the terms of the one below it, with no added exclusions your broker has not flagged. A certificate can note that, but the policy wording controls, so keep a copy of each layer's follow form language.
- Additional insured. If the contract wants your customer able to use your policy when they get sued because of your work, that protection should carry up into the umbrella layers.
- Primary and noncontributory. Your policy pays first and your customer's policy does not chip in. Confirm the umbrella layers match.
- Financial rating. Public work often requires each insurer to hold a minimum rating. Every layer must pass.
Your certificate of insurance (the one page summary of your policies) lists each layer on its own line. See how umbrella layers appear on a certificate.
What do I need to give my broker, and how long will it take?
Every insurer in the tower wants the same file: current policies with their declarations pages (the front pages that show limits and dates), 5 years of loss runs (your claims history report), payroll and revenue by trade, subcontractor costs and their insurance, your largest jobs, and the contract itself. Send it all at once.
A broker shops all the layers at the same time, so $10,000,000 for a clean commercial trade can be in place in about a week. A hard trade, a claims history, or New York work takes two to three weeks. Each higher layer is quoted subject to the layer below it and will not go into force until it sees that layer's final terms, which adds the extra days.
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 concrete subcontractor in New Jersey with 22 employees bids a $1,900,000 package on a county parking structure. The bid requires $10,000,000 per occurrence, "which may be satisfied by any combination of primary and umbrella," and each insurer rated A- or better. He carries $1,000,000 general liability and a $2,000,000 umbrella.
What went wrong: His umbrella insurer caps concrete contractors at $5,000,000. He needs another $4,000,000 above that, and the award letter gives ten business days for certificates.
What it cost: A broker raised the lead umbrella to $5,000,000 and added a $4,000,000 second layer from a specialty insurer, both in place in eight business days. Total umbrella cost was about $19,000 a year (illustrative), up from $4,200 for the old $2,000,000. On a $1,900,000 contract that is under 1%.
The fix: Nobody would sell this contractor $9,000,000 alone, but two insurers sold it together. Price it into the bid and start the paperwork the day the bid goes in.
Frequently asked questions
Q: How do I get $10 million in liability coverage for a construction contract?
Keep your $1,000,000 general liability policy and add umbrella layers on top until the total meets the contract, usually two or three layers from different insurers. Expect $8,000 to $30,000 a year for the layers (illustrative) and one to three weeks.
Q: Can one insurance company give me $10 million?
Sometimes, for a clean commercial trade with several years in business. Most insurers that write small contractors stop at $2,000,000 or $5,000,000, so the rest comes from a second insurer stacked on top.
Q: Does $10 million total mean a $10 million umbrella?
Not always. If the contract allows "any combination of primary and umbrella," your $1,000,000 general liability counts and you need a $9,000,000 umbrella. If it says "$10,000,000 umbrella," you need the full $10,000,000 on top. Ask before you buy the extra million.
Q: How much does $10 million of coverage cost a small contractor?
The umbrella layers commonly run $8,000 to $30,000 a year, and more for roofing, demolition, structural, or New York work (illustrative). Trade, payroll, state, and claims history drive the price.
Q: Do I need to raise my general liability limit to get to $10 million?
Usually no. Umbrella insurers want $1,000,000 per occurrence and $2,000,000 aggregate underneath, which most contractors already have. Extra limit is cheaper as umbrella layers than as a bigger general liability policy.
Q: Will the owner accept coverage from three different insurance companies?
Almost always, as long as each layer is written to follow the one below it and each insurer meets the contract's minimum financial rating.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Building a $10,000,000 liability tower from several insurers for a contractor bidding large work is exactly the kind of placement we handle.
- 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.