Commercial Umbrella Insurance for California Contractors

Quick Answer

A commercial umbrella sits on top of your GL, Commercial Auto, and Employer's Liability (Coverage B on WC), extending limits by $1M–$10M. Many California GCs require contractors to carry $2M–$5M umbrella on commercial projects. Typical premium: $800–$2,500/year per $1M of coverage. Call (858) 925-9555.

How an Umbrella Works

If a claim exhausts your primary policy's limit (say a $1M GL on a $1.3M judgment), the umbrella kicks in for the gap. It doesn't replace the primary — it sits on top of it. Most umbrellas require minimum underlying limits: $1M GL, $1M Commercial Auto, $1M Employer's Liability (Coverage B).

When You Actually Need One

• Commercial GC subcontracts requiring $2M/$4M GL or higher
• Public-works projects requiring $5M aggregate limits
• Higher-risk trades (roofing, demo, excavation, fire restoration) operating in metro areas
• Any time the cost of a serious loss exceeds your underlying limit

Cost

Coverage	Typical California annual premium
$1M umbrella	$800 – $1,400
$2M umbrella	$1,200 – $2,200
$5M umbrella	$2,500 – $5,500
$10M umbrella	$5,500 – $12,000

Higher for roofing, demo, and other hazardous trades. 2026 estimates.

Related: Commercial Umbrella · General Liability