Excess / Umbrella Liability Insurance
Extra protection when standard limits aren’t enough
Excess (Umbrella) Liability adds from $1 million to $5 million (or more) above the trucking company’s primary auto-liability, general-liability, and employers-liability limits. Shippers, ports, and oversized-load permits frequently require these higher limits before a load is tendered.
Coverage
Scenario | Primary policy pays first | Umbrella picks up when… |
|---|---|---|
Serious accident involving multiple passenger vehicles | Primary Auto Liability: $1 million limit | The total claim exceeds $1 million; the umbrella policy covers the next $1 million to $5 million (up to the selected limit). |
Slip-and-fall at a customer dock | Truckers General Liability: $1 million | A claim or judgment exceeding $1 million; the umbrella policy applies excess coverage. |
Employee lawsuit for injury beyond workers benefits | Employers' Liability: $1 million | Liability damages exceed the underlying $1 million limit. |
Follow-form wording: Most trucking umbrellas are “follow-form,” meaning the excess layer mirrors the exclusions and conditions of the underlying policies.
Who needs it
Who typically needs Excess / Umbrella Limits
Carriers hauling high-value or hazardous freight (electronics, hazmat, oversized machinery)
Fleets entering contracts with large retailers, ports, or government agencies that mandate $2 million –$5 million total liability
Multi-state regional and long-haul operators running in congested traffic corridors, where claim severity is higher
Firms with significant asset bases (yard, shop, multiple tractors) need balance-sheet protection from nuclear verdicts
Limits & costs
*Premium influenced by radius, commodity, safety record, and underlying carrier rating.
Cost explanation
Key cost drivers
Underlying Limits & Carriers: Better-rated underlying carriers earn credits.
Commodity & Route Severity: Hazmat, heavy metropolitan routes raise pricing.
Loss History: Large prior verdicts or frequent losses increase the rate and minimum attachment point.
Fleet Size: More power units and higher payroll elevate the exposure base for GL and auto layers.
