A demand for $2M to $5M per claim is usually met with an excess layer, not by rebuilding your program. Excess layers cost far less than primary limits, and most commercial umbrellas do not sit over professional liability at all. Price the layer before you decide the contract is impossible. Who this is for: Engineering firms handed an enterprise or public sector insurance schedule.
The short version
- Excess layers are the normal route to a high limit and cost less than raising the primary.
- Most umbrellas do not extend over professional liability. Check before you promise anything.
- Each additional million typically costs less than the one below it.
- Align retroactive dates across primary and excess or you create a gap.
- Price the extra limit before walking away from the engagement.
Why the demand is so high
Large buyers set one insurance standard for every vendor, from the cleaning contractor to the engineering firm. Nobody at procurement wrote a separate schedule for professional services firms, so you get handed $2M to $5M per claim, and public infrastructure work frequently demands $5M or a project policy and a request for a certificate by Friday.
The four ways to get there
| Approach | How it works | Relative cost |
|---|---|---|
| Raise the primary limit | Move the underlying policy from $1M to $2M or more | Adds 40 to 70 percent of the primary premium per step |
| Buy an excess layer | A second policy sitting above the primary, following its form | Often the cheapest route to a large number |
| Commercial umbrella | Sits over general liability, auto, and employers liability | Modest, but usually does not cover professional liability |
| Project specific policy | A separate limit dedicated to one engagement | Highest, used when one client demands far more than the rest |
The trap is assuming an umbrella solves it. Most commercial umbrellas do not sit over professional liability at all, so a contract demanding $2M to $5M per claim of professional liability needs either a higher primary or a true excess professional liability layer.
Negotiating the requirement itself
- Ask whether the limit can be tied to the contract value rather than the vendor template.
- Offer a higher limit on general liability, which is cheap, in exchange for a realistic professional liability number.
- Ask whether the requirement can be met with a combined program across primary and excess, which it almost always can.
- If the requirement is genuinely fixed, price the excess layer before you price the engagement. It is a cost of the work.
What to check before you bind an excess layer
- Does it follow form, so the coverage above matches the coverage below?
- Does it drop down if the primary is exhausted by an unrelated claim?
- Are the retroactive dates aligned across both layers?
- Does the certificate show both layers clearly, so the client's compliance team accepts it the first time?
Related reading: umbrella versus excess liability.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A engineering firm that won a large engagement conditional on carrying $2M to $5M per claim.
The claim: The matter started with a survey that placed a property line three feet inside a neighboring parcel. An occupied structure had to be modified and the neighbor sued for encroachment.
The cost: $55,000 in defense costs and $175,000 in settlement, $230,000 in total, paid inside the policy limit after the retention.
The lesson: An excess layer above the existing primary satisfied the requirement in three days at a cost the engagement absorbed easily. Rebuilding the whole program would have cost several times more.
Frequently asked questions
Q: A client wants $5 million in coverage. How do I get there?
Usually with an excess layer above your primary policy rather than by moving the primary alone. Excess limits are priced far below primary limits, so the total is often less than firms expect.
Q: Does an umbrella cover professional liability?
Most commercial umbrellas do not. They sit over general liability, auto, and employers liability. A high professional liability requirement needs a higher primary or a true excess professional liability policy.
Q: How much does an extra million of coverage cost?
Excess layers commonly cost 50 to 70 percent of the layer below them, so each additional million is cheaper than the last. Ask for the options priced side by side.
Q: Can I buy coverage for just one client?
Sometimes. Project specific or engagement specific policies exist and are used when one client demands far more than the rest of your book. They cost more, but they keep the requirement from repricing your whole program.
Q: Is it worth walking away from a contract over the limits?
Price the extra coverage first. Often the incremental premium is small relative to the engagement, and knowing the number turns a blocker into a line item.
Q: Should the excess layer follow form?
Yes. A following form excess policy matches the coverage of the primary. A non-following form can be narrower, which defeats the point of buying it.
How Morrow helps engineering firms
Morrow is a licensed independent commercial insurance brokerage that specializes in engineering firms. Structuring primary and excess limits to meet a contract is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for engineering firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for engineering firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.