Commercial Umbrella Insurance is a type of business insurance that provides extra liability coverage beyond the limits of your primary policies — like General Liability, Commercial Auto, or Employer’s Liability.
It’s designed to protect your business from large, unexpected lawsuits or claims that exceed the limits of your other insurance.
🧾 How It Works (Simple Example)
Let’s say your travel company has:
- General Liability Insurance limit: $1 million
- You’re sued for $2 million due to a serious injury during a guided tour.
➡️ Your General Liability covers $1 million
➡️ Your Commercial Umbrella Insurance kicks in and covers the remaining $1 million
💡 What It Covers
Commercial Umbrella Insurance extends the coverage of:
| Primary Policy | Umbrella Coverage Adds Extra Protection For |
|---|---|
| General Liability Insurance | Injury lawsuits, third-party property damage, advertising injury claims |
| Commercial Auto Insurance | Serious vehicle accidents involving your company car or tour van |
| Employer’s Liability | Lawsuits from employee injuries not fully covered by workers’ comp |
✅ Benefits of Commercial Umbrella Insurance
- High-limit protection for catastrophic events
- Peace of mind — you’re covered even for unusually large claims
- Cost-effective — much cheaper than raising limits on each individual policy
❗ What It Does Not Cover
- Business property damage
- Professional mistakes (E&O)
- Employee discrimination or harassment claims (covered by EPLI)
- Cyber incidents (covered by Cyber Insurance)
💼 Who Needs It?
Travel companies should consider umbrella insurance if they:
- Deal with the public (e.g., run tours, host events)
- Have physical locations or offices
- Employ staff
- Use company vehicles for client pickups or excursions
- Want protection from multi-million dollar lawsuits
💰 Estimated Cost
- Small travel business: $500 – $1,500/year
- Mid-sized tour operator: $1,500 – $3,000+/year
(Cost varies by risk exposure, location, and coverage limit)