Commercial Umbrella Insurance
Add Extra Protection with
Commercial Umbrella Insurance
When a major lawsuit or large liability claim hits your business, your standard insurance policies—like general liability or auto—may not be enough. That’s where commercial umbrella insurance comes in. It’s designed to pick up where your other liability policies stop, giving Los Angeles businesses an added layer of financial protection when things go sideways.
Whether you run a contracting company in Glendale, a retail shop in Santa Monica, or a delivery fleet in downtown LA, a
business umbrella policy can help protect your assets if you’re facing high-dollar claims or legal expenses.

What Umbrella Insurance Covers
Umbrella insurance acts as excess liability coverage, kicking in when the limits of your primary policy are exhausted. It typically extends over:
General Liability
Covers third-party injuries or property damage lawsuits
Commercial Auto
Steps in after a serious at-fault accident
Employers Liability
Part of workers’ comp, this protects against injury-related lawsuits
Hired/Non-Owned Auto
Covers claims when employees use personal vehicles for work
A commercial umbrella policy doesn’t add new types of coverage—it extends the limits of what you already carry. It’s ideal for businesses that face higher risk due to public exposure, client contracts, or significant assets.
Is a Business Umbrella Policy Right for You?
Here are a few signs your company may benefit from excess liability insurance:
- You frequently interact with the public or work on third-party properties
- You transport goods or people in company vehicles
- You work on high-value contracts or projects
- You lease a space and are required by your landlord to carry high liability limits
- You simply want peace of mind knowing your business can withstand a major claim
Even a single lawsuit can cost millions. Umbrella coverage is a cost-effective way to increase your protection limits across multiple policies.
Why Businesses Across California Choose Derian
At Derian Insurance, we work closely with small and mid-size businesses across Los Angeles and Southern California to structure liability coverage that fits your risk profile and industry needs. With more than 55 years of experience, we help ensure:
No coverage gaps between your underlying and umbrella policies
Your
limits match contractual obligations or franchise requirements
You receive guidance on how much extra protection is smart for your exposure
You get help quickly if a claim hits those higher layers
We can also bundle your umbrella with general liability, auto, and workers’ comp for a seamless insurance strategy that grows with your business.
Commercial Umbrella FAQs
When does umbrella insurance kick in?
Only after your primary liability policy limits are maxed out. For example, if your general liability policy has a $1 million limit and you’re sued for $1.5 million, the umbrella covers the excess $500,000.
Does umbrella insurance cover everything?
No. It doesn’t expand what’s covered—it only extends existing liability limits. It won’t apply to professional liability, cyber liability, or anything excluded from your base policy.
How much umbrella coverage should I carry?
It depends on your assets, industry, and risk level. Many small businesses carry $1M to $5M in umbrella limits. We’ll help evaluate what’s right for your situation.
Is commercial umbrella insurance expensive?
It’s usually affordable compared to the coverage it provides. Rates depend on your underlying policies, industry, and business size.
Get an Umbrella Quote That Covers What Matters
When it comes to lawsuits, it only takes one to threaten everything you’ve built. A commercial umbrella policy is one of the simplest, most cost-effective ways to extend your protection.
Let us help you layer your liability and keep your business moving forward with confidence.