What is Commercial Umbrella Insurance?

Commercial umbrella insurance is additional liability coverage that sits above your primary policies, providing extra protection once those underlying limits are exhausted.

What you need to know

If a catastrophic claim exceeds your $1 million general liability limit, umbrella insurance kicks in to cover the excess—often providing an additional $1M-$5M in protection at relatively low cost.

Why it matters for restaurant owners

Major incidents can easily exceed standard liability limits—a serious foodborne illness outbreak, a fatal drunk driving accident involving your restaurant, or a massive slip-and-fall injury. Once your primary coverage is exhausted, you’re personally liable for the remainder.

Umbrella policies cost far less per dollar of coverage than primary policies, making them one of the best values in insurance. Most restaurants should carry at least $2-3M in umbrella coverage.