Umbrella & Excess Liability Insurance for Contractors

When one accident threatens everything you’ve built, an umbrella policy can make the difference between staying in business—or not.

Umbrella insurance for contractors gives your business an extra layer of protection above your standard liability policies. Whether it’s a jobsite injury, a lawsuit from a subcontractor, or a major auto accident involving your work truck, claims can easily exceed your standard $1M liability limit. That’s where umbrella coverage steps in.

One Major Lawsuit Could Exceed Your Policy Limits

In construction, high-dollar claims happen more often than people realize:

• A scaffolding collapse injures multiple people and the medical/legal costs hit $2.5M
  
• A company vehicle accident causes severe injuries and a multi-million-dollar judgment
  
• A client sues over property damage and lost income from a project delay
  

If your general liability or commercial auto coverage maxes out at $1M, you could be left paying the rest—unless you have an umbrella or excess liability policy.

Why Contractors Use Umbrella Coverage to Bid Bigger

Larger commercial and government projects often require higher liability limits—$2M, $5M, or more. Rather than raising each individual policy, a contractors umbrella policy lets you stack extra protection across multiple lines at once.



Most of our clients in SoCal carry umbrellas in $1M increments, with many opting for $2M to $5M depending on project size, contract requirements, and risk exposure. It’s a cost-effective way to meet bid requirements and protect your business as you grow.

How Umbrella & Excess Policies Work

Your umbrella sits on top of your other liability policies—like:

• General Liability
  
• Commercial Auto
  
• Employer’s liability (from Workers’ Comp)
  
• And others, depending on what’s eligible

If a claim exhausts your base coverage, the umbrella picks up from there—up to its own limit. Umbrella policies can also provide broader coverage than excess-only policies, filling some potential gaps between underlying policies if written correctly.

What It Costs & Why It’s Worth It

Umbrella insurance is surprisingly affordable compared to the amount of coverage it provides. For example, adding $1M in extra coverage often costs a fraction of what it would take to increase your base liability policy.

Think of it this way: You can double or triple your total protection across all major liability lines—without paying double or triple your premium.

Be Ready for Bigger Jobs & Bigger Risks

We see many California contractors start bidding on larger projects in places like Riverside, San Bernardino, or Orange County—and then realize they’re required to show higher insurance limits. Having an umbrella already in place helps you check that box fast and move forward.



Even if you're not there yet, it’s smart to plan ahead.

Our Role: Making Sure Your Umbrella Actually Fits

An umbrella policy only works if it’s properly aligned with your underlying coverage. At Calrisk, we coordinate all your policies—so there are no coverage gaps, misaligned dates, or missed requirements that could jeopardize a claim.



We’ll help you decide:

• How much additional coverage you need
  
• Which policies the umbrella should extend
  
• Whether you’re meeting the liability thresholds required by project owners or GC agreements
  

And we do it all with the realities of your day-to-day construction work in mind.

Need More Coverage Without Breaking the Budget?

If your current liability limits top out at $1M, that might not be enough for the work you're doing—or want to do next.



Let’s talk about building your coverage up. Contact Calrisk to review your current limits and get a quote for an umbrella policy that matches your risk level, contract requirements, and future plans.