A commercial umbrella policy adds $1 million or more of excess liability above your general liability, commercial auto, and employers’ liability limits — for a fraction of what those underlying policies cost. ALLCHOICE Insurance compares commercial umbrella options across multiple top-rated carriers for NC businesses of every size.
Typical Underlying Requirements Carrier-required
GL per occurrence / aggregate — minimum underlying GL required by most commercial umbrella carriers
Commercial auto liability — typical underlying auto limit required before umbrella activates
Employers’ liability (Part Two) — per accident / aggregate underlying minimum
Many umbrella carriers prefer or require underlying policies to be written with the same company
If your current GL or auto policy carries lower underlying limits, you’ll need to increase them before an umbrella can be placed. Your ALLCHOICE advisor will review your current commercial policies to identify any underlying limit adjustments needed — and often finds that the cost of the increase is modest relative to the umbrella capacity it unlocks.
Activates when a covered GL claim exceeds your per-occurrence or aggregate GL limit. Pays the overage up to the umbrella limit — the most common use of a commercial umbrella for NC businesses.
Core coverage
Provides additional liability protection above your commercial auto limits when a vehicle accident results in injuries or damage exceeding your auto policy’s per-occurrence limit.
Core coverage
Adds protection above the Part Two employers’ liability limits on your workers’ comp policy — for lawsuits by injured employees that fall outside the workers’ comp exclusive remedy.
Core coverage
Defense costs are typically paid in addition to the umbrella limit — so a lawsuit doesn’t erode your liability limit before a verdict is reached. Critical for businesses facing large commercial litigation.
Core coverage
Some umbrella policies will “drop down” to provide primary coverage for a covered claim that would otherwise be uninsured — such as a claim that falls into a gap between underlying policies. Not universal; verify with your advisor.
Policy feature
Start at $1 million and add in $1 million increments. Most carriers offer up to $5–$10 million; excess/surplus carriers can go higher for large or complex risks.
Available options
Did you know?
Many NC commercial leases, GC sub-agreements, and government contracts require excess liability limits — $2M, $3M, or $5M per occurrence — that exceed what a standard $1M GL policy provides. A commercial umbrella is typically the most cost-effective way to meet those contractual requirements. Without one, you may be disqualified from bidding on government work, lose a lease opportunity, or be required to dramatically increase your underlying GL premium to hit the contract threshold.
Umbrella pricing and eligibility vary significantly by carrier — and the right fit depends on your underlying policy structure, your industry, and your specific contractual requirements. ALLCHOICE compares commercial umbrella options across multiple carriers and often places the umbrella in coordination with your underlying policies for the best combined rate.
We review your existing GL, auto, and workers’ comp to confirm underlying limits meet umbrella requirements — and recommend adjustments before you’re bound.
We compare umbrella pricing and terms across multiple carriers so you get the right coverage at the right price for your industry and risk profile.
We review your lease, GC agreement, or government contract requirements to make sure your umbrella structure actually meets the stated limits — not just on paper.
If you ever need to file a claim, your ALLCHOICE advisor works on your behalf — not the carrier’s. A local relationship, not a 1-800 number.
NC state law does not require it. However, many NC commercial leases, government contracts, and GC sub-agreements require total liability limits of $2M–$5M per occurrence — amounts that often require an umbrella policy above a standard $1M GL. In practice, a commercial umbrella is frequently necessary to win contracts or sign leases.
A $1 million commercial umbrella typically costs $500–$2,500 per year depending on your industry, revenue, and underlying policy structure. Each additional $1 million of coverage typically adds $300–$800 per year. For most NC businesses, a commercial umbrella is significantly less expensive than increasing GL limits to equivalent levels.
Both provide coverage above underlying policy limits. A commercial umbrella typically offers broader terms than the underlying policy and may drop down to cover gaps. Excess liability follows the underlying policy form exactly — it simply provides more of the same coverage. For most NC businesses, a true commercial umbrella provides more comprehensive protection than a follow-form excess policy.
Some carriers will write a commercial umbrella without requiring all underlying policies to be with the same company. Others insist on bundling. ALLCHOICE evaluates both options — carrier-specific umbrella programs and standalone umbrella placements — to find the most competitive overall structure for your situation.
We review your underlying policies and compare umbrella options across multiple top-rated carriers. Takes about five minutes to get started.
Log in to the Member Center to review your current commercial umbrella, adjust limits, or check whether your coverage meets new contract requirements.
