You can buy a commercial umbrella from four places. They are your current insurer, an online insurer, an independent broker, or specialty insurers you can reach only through a broker. Most contractors with a hard trade, a young business, or New York work end up at the last two. Who this is for: a contractor whose contract asks for an umbrella and who wants to know where to actually buy one.
The short version
- An umbrella is a second layer of coverage that sits above your other liability policies, mainly general liability and auto.
- Start with your current insurer. If it writes umbrellas for your trade, it is often the cheapest and fastest.
- Online insurers work for clean, low risk trades with small limits. They rarely quote roofing, demolition, or New York work.
- A broker can shop one application to many insurers, including specialty markets you cannot reach yourself.
- Expect same day to two weeks, and $600 to $2,500 a year for a $1,000,000 layer (illustrative).
What am I actually shopping for?
An umbrella (also called excess liability) is a second layer of coverage that sits above your other liability policies. When a claim uses up your general liability, auto, or employers liability limit, the umbrella pays the rest up to its own limit. Employers liability is the part of workers comp that pays if an employee sues you.
Every umbrella insurer requires minimum limits on the policies underneath. The usual ask is $1,000,000 per occurrence (the most the policy pays for one incident) and $2,000,000 aggregate (the most it pays in a whole policy year) on general liability, $1,000,000 on auto, and $500,000 or $1,000,000 on employers liability. Check your limits before you shop. If they are lower, you fix that first. Our umbrella guide covers the basics.
Where can I buy an umbrella, and which one fits me?
| Where | Who it works for | Pros | Cons |
|---|---|---|---|
| Your current insurer | Contractors whose general liability insurer also writes umbrellas for their trade | Often cheapest, one bill, package discount, fast | Many insurers do not write umbrellas for contractors, or stop at $1,000,000 or $2,000,000 |
| Online direct insurer | Clean, low risk trades (handyman, painting, low voltage) with 3 or more years and a $1,000,000 limit | Fast, sometimes same day | Rarely quotes roofing, demolition, work at height, residential, or New York work |
| Independent broker | Any contractor, especially those who need $2,000,000 or more | One application shopped to many insurers, advice on the contract wording | Takes a few days, needs a full set of documents |
| Specialty (surplus lines) market | Hard trades, new businesses, claims, New York, large limits | Will write what standard insurers will not | Higher minimum premiums, reached only through a broker |
Should I try my current insurer first?
Yes, and ask a specific question: "Do you write a commercial umbrella for my trade, and up to what limit?" If the answer is yes and the limit meets your contract, get the quote. The same insurer on both policies usually means the two forms are written to line up, so there are fewer wording gaps between them, and some insurers give a package discount.
Why do I need a broker to reach specialty insurers?
Specialty insurers, also called surplus lines or non-admitted insurers, write what standard companies will not. They do not sell to the public. A broker reaches them through a wholesaler, which is a specialty middleman. The broker sends one application, the wholesaler shops it to the insurers that want your trade, and the quotes come back through the broker. See how surplus lines works.
What will a broker ask me for?
- Your current policies with the declarations pages (the front pages that show limits and dates).
- 5 years of loss runs, which is your claims history report from each insurer.
- Payroll and revenue, split by trade and by residential versus commercial work.
- What you pay subcontractors, and whether they carry their own insurance.
- Your three largest jobs in the last few years.
- The contract that asks for the umbrella, so the limit and wording are matched exactly.
Send all of it at once. A complete file gets quoted in days. A file that trickles in gets quoted in weeks.
What does an umbrella cost for a contractor?
These ranges are illustrative. Your price depends on trade, payroll, state, claims history, and how much work you subcontract.
| Limit | Typical yearly cost | Notes |
|---|---|---|
| $1,000,000 | $600 to $2,500 | Most trades with clean claims |
| $5,000,000 | $3,000 to $12,000 | Higher for roofing or New York work |
| $10,000,000 | $8,000 to $30,000 or more | Often two insurers stacked, depends on trade |
For a fuller breakdown, see what commercial umbrella insurance costs.
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 plumbing contractor in Texas with six employees and $1,100,000 in yearly revenue wins a $260,000 subcontract on a hotel. The subcontract asks for a $2,000,000 umbrella. The owner's general liability insurer writes umbrellas, but only up to $1,000,000 for plumbers.
What went wrong: An online quote site gives a $1,000,000 quote and no option for $2,000,000. The owner has ten days before mobilization and does not know where else to look.
What it cost: A broker sent one application to five insurers and placed a $2,000,000 umbrella in four business days for about $2,900 a year (illustrative). The current insurer's $1,000,000 quote had been $1,400, so the second million cost roughly $1,500.
The fix: Your current insurer is the right first call, but when it caps the limit, a broker with one application beats a week of phone calls.
Frequently asked questions
Q: Where can I get commercial umbrella insurance for my contracting business?
From your current insurer, an online direct insurer, an independent broker, or specialty insurers reached through a broker. Start with your current insurer. If it will not write your trade or your limit, a broker shops one application to many companies.
Q: Can I buy an umbrella online like my general liability?
Sometimes, if your trade is low risk, your business is 3 or more years old, and you need $1,000,000. Online insurers rarely quote roofing, demolition, work at height, residential, or New York work, and most stop at $1,000,000 or $2,000,000.
Q: Do I have to buy the umbrella from the same company as my general liability?
No. The umbrella can come from a different insurer. The umbrella insurer will want to see and approve your underlying policies and limits. Some insurers give a package discount for keeping everything together, so compare both ways.
Q: Will my general contractor accept a specialty insurer?
Almost always, as long as the insurer has a strong financial rating, and many contracts spell out the minimum rating. Also check whether the contract requires insurers licensed (admitted) in your state, because specialty insurers are not. If that wording is there, ask your customer for an exception in writing before you buy.
Q: How long does it take to buy an umbrella?
Same day for a clean account with a standard insurer. Three to ten business days through a broker for most trades, and up to two weeks for hard trades or New York work. Having your documents ready is what speeds it up.
Q: Does a broker charge me to shop my umbrella?
Usually not. Brokers are paid a commission by the insurer out of the premium, though a specialty (surplus lines) placement also adds state surplus lines taxes and fees, and some placements add a broker or wholesaler fee. All of it must be itemized on your quote before you buy, and your broker must disclose any broker fee in writing where your state requires it.
Rules and prices differ by state. There is a local version of this guide for Arizona, California, Florida, Georgia, Massachusetts, New Jersey, New York, and Texas.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Shopping one umbrella application across standard and specialty insurers for contractors is a core 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.