You cannot find umbrella insurance because standard insurers that sell online have rules your business does not fit. The coverage still exists, but for your trade, state, claims history, or business age it lives with specialty insurers that sell only through a broker. Who this is for: contractors whose contract asks for an umbrella and who keep hearing "no" or "we do not offer that."
The short version
- An umbrella is a second layer of coverage that sits above your other liability policies, mainly general liability and auto.
- Standard insurers often turn down umbrellas for roofing, demolition, work at height, residential work, New York work, recent claims, and businesses under 3 years old.
- A small premium is also a reason. Many insurers will not sell an umbrella under a minimum price.
- Specialty insurance companies insure these accounts, but you reach them only through a broker.
- Placing one takes a day to two weeks, so send your contract to a broker now.
What is an umbrella policy, and why does my contract want one?
An umbrella (also called excess liability) is a second layer of coverage above your other liability policies. If a claim uses up your general liability limit, the umbrella pays the rest, up to its own limit. It sits over general liability, commercial auto, and employers liability (the part of workers comp that pays if an employee sues you).
General contractors ask for one because a $1,000,000 limit is not much on a large job. For the basics, see our commercial umbrella guide.
Why do insurance companies say no to my umbrella?
Every insurance company has an appetite, meaning the kinds of businesses it wants to insure. For small contractors, umbrella appetite is narrow. Here are the most common reasons for a no.
| Reason | What the insurer is worried about |
|---|---|
| Your trade | Roofing, demolition, work at height, structural work, and blasting have the biggest injury claims |
| Residential or apartment work | Homeowner and condo lawsuits, and water damage claims that show up years later |
| New York work | New York Labor Law makes owners and contractors responsible for many worker falls, so claims run large |
| Claims history | Any large liability claim in the last 5 years, or several small ones |
| New business | Less than 3 years in business under the current name |
| Subcontracting | What you pay subs is more than a set share of your total sales (often 25% to 50%, and as low as 10% in some programs), especially when the subs are uninsured |
| Small premium | The umbrella would cost less than the insurer's minimum, so the account is not worth it |
A two year old roofer doing New York houses hits four of these rows.
Why does a small business have a harder time than a big one?
A $1,000,000 umbrella for a small trade shop might cost $600 to $2,500 a year (illustrative, and it depends on trade, payroll, state, and claims history). Standard insurers often set a minimum premium above that and decline anything smaller.
The account then moves to specialty insurance companies, called surplus lines insurers. They cover what standard insurers will not. Their minimums run higher, often $2,500 to $5,000 for a $1,000,000 layer on a hard trade (illustrative, and it depends on trade, payroll, state, and claims history). You reach them only through a broker. Read more on how surplus lines works.
What can I do about each reason?
- Trade. A broker who knows which specialty insurers like your trade gets quotes a generalist cannot.
- Residential or New York work. Be exact about your split. Guessing high costs you money. Guessing low can give the insurer grounds to deny a claim or cancel the policy, because the split is part of your application.
- Claims. Get your loss runs (your claims history report from your insurer) for the last 5 years. Add a note on each one: what happened, what you changed. The people who price your policy read those notes.
- New business. Show your years in the trade, even under another company. Some insurers count it.
- Subcontracting. Collect a certificate of insurance (a one page summary of their policies) from every sub. Insurers relax when subs are insured.
- Small premium. Ask if buying your general liability from the same insurer clears the minimum.
How long does it take once I find an insurer that will sell it?
A clean, standard account can be in force the same day. A specialty placement usually takes three to ten business days, and up to two weeks for roofing, demolition, or New York work. Have your policies, loss runs, payroll by trade, subcontractor certificates, and the contract ready. If your start date is sooner, see what to do when requirements exceed your policy. Some general contractors accept a binder (the insurer's short written confirmation that coverage is in force), but a quote is not proof of coverage, so ask the broker to bind before the crew shows up.
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 two year old siding company in New York with four employees wins a $180,000 subcontract on a 40 unit apartment building. It asks for a $2,000,000 umbrella. His insurer will not sell umbrellas to contractors under three years old, and two quote sites return "not available."
What went wrong: The owner spends nine days calling insurers and hears the same answer. The general contractor will not let his crew on site without the umbrella, and work starts in two weeks.
What it cost: A broker placed the $2,000,000 umbrella with a specialty insurer in six business days for about $9,000 to $14,000 a year (illustrative for a young exterior trade doing New York apartment work, where worker fall claims run large).
The fix: The insurers that cover a young New York contractor do not sell online, and the price reflects the fall risk. Send the contract to a broker the day you get it.
Frequently asked questions
Q: Why can't I find commercial umbrella insurance for my contract?
Standard insurers that sell online have narrow rules for contractors. Your trade, residential or New York work, claims, a young business, or a small premium can each block a quote. The coverage exists with specialty insurers that sell only through a broker.
Q: Does my trade really matter that much for an umbrella?
Yes. Roofing, demolition, work at height, structural, and blasting trades produce the biggest injury claims, so many umbrella insurers will not touch them. Others will, at a higher price.
Q: Why would an insurer turn me down because my premium is too small?
Every umbrella takes staff time to review. If your premium is under the insurer's minimum, often $1,500 to $3,000 a year (illustrative, and it varies by insurer, trade, and state), the account is not worth that time. Specialty insurers set higher minimums, so a small shop pays more per dollar of coverage.
Q: Can I get an umbrella if my business is less than three years old?
Usually yes, but not from most standard insurers. Specialty insurers look at your years in the trade, your safety habits, and your subcontractor controls. Expect more questions and a higher price.
Q: Does one old claim stop me from getting an umbrella?
One small, closed claim rarely does. One large injury claim, or several small ones, narrows the field. Send 5 years of loss runs with a note on each, and a broker can usually find an insurer that looks past it.
Q: How fast can a broker place an umbrella once the insurers I tried said no?
Same day for a clean, standard account, and three to ten business days through a specialty insurer. Hard trades and New York work can take two weeks.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Finding an umbrella for a contractor that standard insurers have turned down is a large 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.