You get a $5,000,000 umbrella through a broker, as one policy or as two stacked layers. First, your general liability limits, your auto limits, and the part of workers comp that pays if an employee sues you (employers liability) have to meet the umbrella insurer's minimums. Who this is for: a subcontractor whose general contractor wants $5,000,000 of umbrella and whose policy today is $1,000,000 or nothing.
The short version
- An umbrella is a second layer of coverage that sits above your other liability policies, mainly general liability and auto.
- The policies under the umbrella usually need $1,000,000 for one incident and $2,000,000 for the year on general liability, $1,000,000 on auto, and $500,000 or $1,000,000 for employee lawsuits.
- $5,000,000 can be one policy from one insurer, or a $2,000,000 first layer plus a $3,000,000 second layer from another. Most contracts accept either.
- Illustrative cost is $3,000 to $12,000 a year, and more for roofing or New York work.
- Send the contract and your documents to a broker now. A clean file can be in force in days, a hard trade takes up to two weeks.
What does a $5,000,000 umbrella requirement actually mean?
An umbrella (also called excess liability) is a second layer of coverage above your other liability policies. When a claim uses up your general liability limit, the umbrella pays the rest, up to its own limit. A $5,000,000 umbrella over $1,000,000 of general liability gives $6,000,000 for one covered claim.
Your general contractor asks for it because a serious injury on a commercial job can pass $1,000,000 quickly. Read the exact wording. Some contracts say "$5,000,000 umbrella." Others say "$5,000,000 total liability, any combination of primary and umbrella," which is easier to meet. See our umbrella guide.
What do I need in place before anyone will sell me $5,000,000?
Umbrella insurers require minimum limits on the policies underneath. If yours are lower, raise them first.
| Underlying policy | Minimum limit most umbrella insurers require | If yours is lower |
|---|---|---|
| General liability | $1,000,000 per occurrence (the most for one incident) and $2,000,000 aggregate (the most for the year) | Ask your insurer to raise it mid term, usually for a small extra premium. |
| Commercial auto | $1,000,000 combined single limit (one number covering injury and property damage together) | Raise it mid term. With no vehicles you still need coverage for vehicles you rent or employees drive for work (hired and non-owned auto) at $1,000,000. |
| Employers liability | $500,000 or $1,000,000 per accident, per employee, and per policy | Ask your workers comp insurer to raise it. The charge is roughly 1% to 3% of your workers comp premium, so often $100 to $400 a year for a small shop and more with a large payroll (illustrative). |
Can I get all $5,000,000 from one insurer, or does it have to be stacked?
Either works, and the contract usually does not care. One insurer that likes your trade can write the whole $5,000,000. If none will go that high, a broker builds a tower: a $2,000,000 lead umbrella from one insurer and a $3,000,000 layer from another on top. Each layer is written to follow the terms of the one below it, but a higher layer can add its own exclusions, so ask your broker to compare the forms before you buy.
Stacking is normal for $5,000,000 towers and often cheaper, because the top layer is less likely to pay. Your certificate of insurance (the one page summary of your policies) shows each layer on its own line. See how umbrella layers show on a certificate.
What will $5,000,000 of umbrella cost me?
These figures are illustrative. Price depends on trade, payroll, state, claims history, and how much you subcontract.
| Contractor | Illustrative yearly cost for $5,000,000 |
|---|---|
| Interior trades (drywall, painting, flooring), commercial, clean claims | $3,000 to $6,000 |
| Mechanical, electrical, plumbing, mostly commercial | $4,000 to $8,000 |
| Framing, concrete, steel, or mixed residential work | $6,000 to $12,000 |
| Roofing, demolition, or any New York work | $12,000 and up, often stacked from two insurers |
A $5,000,000 umbrella at $6,000 a year on a $400,000 subcontract is 1.5% of the job. Price it into your bid.
What documents does my broker need, and how fast can this happen?
- Your current general liability, auto, and workers comp policies with the declarations pages (the front pages that show limits and dates).
- 5 years of loss runs (your claims history report from each insurer).
- Payroll and revenue by trade, the residential and commercial split, and what you pay subs.
- Your largest jobs, and the contract that asks for the $5,000,000.
With a complete file, a standard insurer can have the policy in force in one to three business days. A stacked tower or a hard trade takes five to ten business days, and up to two weeks for roofing or New York work. If your start date is sooner, ask whether a binder (the insurer's written confirmation that coverage is in force) will let you start, because a quote by itself is not proof of coverage. See when requirements exceed your policy.
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: An electrical subcontractor in Florida with nine employees signs a $520,000 warehouse subcontract. The exhibit asks for a $5,000,000 umbrella. He carries $1,000,000 general liability, $1,000,000 auto, $500,000 employers liability, and a $1,000,000 umbrella.
What went wrong: His umbrella insurer will not go above $2,000,000 for electrical contractors. The certificate is rejected, and the general contractor gives him two weeks to fix it.
What it cost: A broker replaced the umbrella with a $2,000,000 lead layer from one insurer and a $3,000,000 layer from a specialty insurer, in force in seven business days, for about $6,400 a year total (illustrative). The old $1,000,000 umbrella had cost $1,300.
The fix: One insurer said no to $5,000,000, but two said yes together. A broker who builds towers knows which two to ask.
Frequently asked questions
Q: My GC requires $5 million in umbrella insurance. How do I get it?
Confirm your general liability, auto, and employers liability limits meet the umbrella insurer's minimums, then have a broker shop it as one policy or two stacked layers. Expect $3,000 to $12,000 a year (illustrative) and three days to two weeks.
Q: Can two insurance companies together make up my $5 million?
Yes. A $2,000,000 lead umbrella from one insurer plus a $3,000,000 layer from another is a normal structure. Each layer is written to follow the one below it, but higher layers can add their own exclusions, so ask your broker to compare the forms. Most contracts accept this.
Q: Do I have to raise my general liability limit before buying a $5 million umbrella?
Only if it is below the umbrella insurer's minimum, usually $1,000,000 for one incident and $2,000,000 for the year. Most contractors already carry that. Auto at $1,000,000 and employers liability at $500,000 or $1,000,000 are the other usual minimums.
Q: How much does a $5 million umbrella cost a small contractor?
Roughly $3,000 to $12,000 a year for most trades (illustrative), and more for roofing or New York work. Trade, payroll, state, and claims history drive the price.
Q: Can I buy the $5 million just for this one job?
Umbrella policies are written for a year. A project-specific policy exists for large jobs but usually costs more than an annual policy for a small contractor. Most owners keep the higher limit, because the next general contractor asks for it too.
Q: What if my start date is before the umbrella can be placed?
Ask the general contractor whether a binder (the insurer's written confirmation that coverage is in force) is enough to let you start. Many accept it for a few days. A quote by itself is not proof of coverage.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Placing a $5,000,000 umbrella for a subcontractor before a start date is one of the most common jobs 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.