Commercial Umbrella for law firms
Provides an additional layer of liability protection above your primary policies when a catastrophic claim exceeds underlying limits.
Overview
Commercial umbrella insurance provides excess liability coverage that sits above your primary general liability, auto liability, and employers liability policies. When a claim exceeds the limits of an underlying policy, the umbrella kicks in to pay the excess amount up to its own limit. Some umbrella policies also provide drop-down coverage for certain claims not covered by underlying policies, subject to a self-insured retention. This coverage acts as a financial safety net against catastrophic losses that could otherwise threaten the firm's assets and future viability.
Why it matters for law firms
A single severe bodily injury claim from a car accident during firm business, or a catastrophic premises liability event at the office, can easily exceed standard $1,000,000 primary policy limits. Law firms with significant assets, high-earning partners, and professional reputations to protect cannot afford to be underinsured on liability exposures. An umbrella policy provides peace of mind at a relatively low incremental cost compared to increasing limits on each individual underlying policy.
Typical Limits
Umbrella policies are available in increments of $1,000,000, with law firms commonly carrying $2,000,000 to $5,000,000 in umbrella coverage. Larger firms or those with significant auto fleets may carry $10,000,000 or more. Self-insured retentions for drop-down coverage are typically $10,000. Umbrella policies require minimum underlying limits, usually $1,000,000 per occurrence on general liability and $1,000,000 combined single limit on auto liability.
Review your commercial umbrella coverage
Find out if your current commercial umbrella meets best practices for your firm size and practice areas.