You buy a Massachusetts commercial umbrella from the company that writes your liability policies, or through an independent broker. Your own insurer is quickest for $1,000,000 or $2,000,000. A broker is the route when you need more, when your trade is hard to place, or when the contract wants a limit your insurer will not write. Who this is for: Massachusetts contractors, trades, and service businesses whose contract or lease asks for an umbrella.
The short version
- An umbrella is a second layer of coverage that sits above your general liability, your auto, and the part of workers comp that pays if an employee sues you.
- Start with your current insurer for $1,000,000 or $2,000,000. Go to an independent broker for more, or when your insurer says no.
- Massachusetts courts are tough on snow and ice claims and allow doubled or tripled damages in some consumer cases. That is why customers ask for higher limits.
- Specialty insurers can write what standard ones will not. In Massachusetts the broker pays a 4 percent premium tax on those policies and it is built into your price.
- A $1,000,000 umbrella often runs $600 to $2,500 a year for a small contractor. That is a national illustrative range, not a Massachusetts price.
Where do Massachusetts businesses actually buy an umbrella?
There are three doors. Which one you use depends on the limit you need and how insurers see your trade.
| Source | Best for | What to expect |
|---|---|---|
| Your current liability insurer | $1,000,000 to $2,000,000 for a trade the insurer already likes | Fastest. Often one application and a few days. Some insurers stop at $1,000,000 for contractors. |
| A standard insurer through an independent broker | $2,000,000 to $5,000,000, or a better price than your insurer offers | One application shopped to several companies. One to two weeks. The umbrella insurer does not have to be the same company as your general liability insurer. |
| Specialty (surplus lines) insurers through a broker | Roofing, demolition, snow removal, work at height, past claims, or $5,000,000 and up | Specialty insurers write what standard ones will not. In Massachusetts the broker pays a 4 percent premium tax on these policies (M.G.L. c. 175 s. 168). Two to three weeks. |
You cannot buy an umbrella from a website for most Massachusetts trades. Online insurers sell basic policies. Umbrellas are placed by people. For the mechanics, see commercial umbrella insurance.
What does the umbrella sit on top of?
An umbrella usually pays after the policy under it is used up. A true umbrella can also be broader than the policy below, and can pay a claim that policy does not cover once you pay a set amount yourself. A policy that only copies the terms below it is never broader. So the insurer writing the umbrella will require certain limits on the policies below.
| Policy under the umbrella | Massachusetts law requires | Umbrella insurers usually require |
|---|---|---|
| General liability | Not required by state law for most trades | $1,000,000 per occurrence, $2,000,000 for the year |
| Commercial auto | Since July 1, 2025: $25,000 per person, $50,000 per accident, $30,000 property damage, $8,000 personal injury protection | $1,000,000 combined single limit |
| Employers liability (the part of workers comp that pays if an employee sues you) | Workers comp itself is required from your first employee | $500,000 or $1,000,000 on each of its three limits |
If your auto policy is at the state minimum, raising it comes first. That costs $300 to $900 more per vehicle a year, a national illustrative range.
Why do Massachusetts customers ask for higher limits?
Three Massachusetts rules push claims higher than owners expect. Snow and ice: since a 2010 court decision, a Massachusetts snow contractor is judged on whether it acted reasonably, and can no longer argue that snow falling naturally was not its problem. Consumer claims: a Massachusetts court can double or triple what a customer is owed, and add their legal bills, when a business acted deliberately. Home improvement work: breaking the home improvement rules counts as that kind of conduct by itself. Doubled damages and legal fee awards are usually not something a liability policy pays, so treat the umbrella as protection for the injury or damage claim. Read your policy wording.
What does an umbrella cost in Massachusetts?
National illustrative annual ranges for a small business with a clean claims history, before the 4 percent Massachusetts tax on specialty policies. Price depends on trade, payroll, revenue, vehicles, and claims.
| Limit | Office, retail, light service | Most building trades | Roofing, demolition, snow, height |
|---|---|---|---|
| $1,000,000 | $400 to $1,000 | $600 to $2,500 | $1,500 to $5,000 |
| $2,000,000 | $700 to $1,800 | $1,200 to $4,000 | $3,000 to $8,000 |
| $5,000,000 | $1,800 to $4,500 | $3,000 to $12,000 | $8,000 to $25,000 |
For ways to bring those numbers down, see how to find cheaper umbrella insurance in Massachusetts. If a general contractor wants $5,000,000, see how to get $5 million in umbrella insurance.
What does the broker need from me?
- Your current general liability, auto, and workers comp policies or declarations pages.
- Five years of loss runs, which is your claims history report from each insurer.
- Revenue and payroll for the past year and the coming year.
- A list of vehicles and drivers.
- The contract or lease that asks for the umbrella, so the limit and wording match.
With a complete file, a Massachusetts broker can usually quote $1,000,000 or $2,000,000 within a few business days and higher limits within two weeks. Start at business insurance in Massachusetts for the state overview.
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 landscaping and snow removal company in Quincy, with about $1,200,000 in revenue and six trucks, wins a maintenance contract from a Boston property manager. The contract wants a $3,000,000 umbrella over $1,000,000 general liability and $1,000,000 auto.
What went wrong: Her current insurer offers a $1,000,000 umbrella at most because of the snow work. Her auto policy carries only $500,000. The property manager will not sign without the full $3,000,000.
What it cost: Illustrative numbers: raising auto to $1,000,000 adds about $2,400 across six trucks. A broker places the $3,000,000 umbrella with a specialty insurer for about $4,800, which includes the 4 percent Massachusetts premium tax. Total added cost about $7,200 a year on a $310,000 contract.
The fix: The owner could not have bought that umbrella online or from her own insurer. One application to a broker with specialty markets closed the gap in twelve days.
Frequently asked questions
Q: Where can I get commercial umbrella insurance for my Massachusetts business?
From the insurer that writes your liability policies, for $1,000,000 or $2,000,000, or through an independent broker who can shop standard and specialty insurance companies for higher limits or harder trades. Morrow places umbrellas for Massachusetts businesses.
Q: Can I buy a commercial umbrella online in Massachusetts?
Rarely, and almost never for a contractor. Online insurers sell basic policies. Umbrellas need a look at your other policies, your claims history, and your work, so they are placed by brokers and insurers, not bought from a website.
Q: Does my Massachusetts auto policy need higher limits before I can get an umbrella?
Usually yes. Massachusetts requires only $25,000 per person and $50,000 per accident since July 1, 2025. Umbrella insurers usually want $1,000,000 on auto before they will sit above it.
Q: What is the extra 4 percent on my quote?
It is a Massachusetts tax on policies written by specialty insurance companies, the ones that write what standard companies will not. Roofing, snow work, and work at height often end up there. The broker pays the tax and it shows up as a line on your quote.
Q: The certificate shows my umbrella. Is that enough for the general contractor?
It is a summary, not proof. A certificate does not grant coverage, and it does not show that the umbrella follows the terms of the policies under it. Ask for the policy pages when the job is large.
Q: How long does it take to get an umbrella in Massachusetts?
A few business days from your current insurer for $1,000,000 or $2,000,000. One to two weeks through a broker for standard markets, and two to three weeks for specialty markets or $5,000,000 and up.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Placing umbrella coverage for Massachusetts businesses, including limits and trades that standard insurers turn down, is what our specialty market access is for.
- 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.