Excess & Umbrella Insurance

What Is Excess & Umbrella Liability Insurance?
 

Excess and Umbrella Liability Insurance are designed to provide additional liability protection when covered claims exceed the limits of an underlying insurance policy. For example, if a trucking company maintains $1 million in Commercial Auto Liability coverage and purchases an additional $2 million Excess Liability policy, it may have up to $3 million in total liability protection for a qualifying covered claim. These coverages can be particularly important for trucking businesses transporting high-value freight, operating larger fleets, or entering contracts that require higher liability limits.
 

Excess Liability vs. Umbrella Insurance
 

Although the terms are often used interchangeably, these policies can provide different forms of protection. Excess Liability Insurance provides additional limits above specified underlying insurance policies. Excess coverage often follows the terms and exclusions of the underlying policy, although its own conditions may apply. Umbrella Liability Insurance may provide broader liability protection by covering certain exposures not included in the underlying policies, in addition to providing higher limits. Any broader coverage is subject to policy terms, exclusions, and possible self-insured retentions. Not every Umbrella policy provides broader coverage, and not every policy extends over Commercial Auto Liability. The specific coverage form must be reviewed.
 

Why Do Trucking Companies Need Additional Liability Coverage?
 

Protection Against Large Claims, serious trucking accidents can result in substantial bodily injury, property damage, legal defense expenses, and liability judgments.

Contractual Insurance Requirements, certain shippers, freight brokers, and commercial customers require motor carriers to maintain liability limits exceeding their primary insurance coverage. Protection of Business Assets, additional liability limits can help protect a company's financial resources against covered claims that exceed underlying policy limits.  Coverage for Growing Fleets, as trucking operations expand, additional vehicles, drivers, and operating territories may increase the company's overall liability exposure.
 

What Policies Can Excess or Umbrella Insurance Cover?
 

Depending on the insurer and policy structure, additional limits may be available above:

• Commercial Auto Liability Insurance

• Commercial General Liability Insurance

• Employers' Liability Insurance

• Other specifically scheduled underlying liability policies

Note: Coverage does not automatically extend above every insurance policy. Motor Truck Cargo, Physical Damage, and other first-party property coverages generally require separate insurance arrangements.
 

How Much Excess Liability Coverage Do You Need?
 

The appropriate liability limit depends on the company's operations, fleet size, contractual requirements, and potential exposure to severe claims.Common additional limits may include $1 million, $2 million, $5 million, or higher, depending on market availability and underwriting eligibility.

Our agency helps trucking businesses evaluate available coverage options based on their individual operations and insurance requirements.