Commercial Umbrella Insurance
Umbrella insurance extends your primary liability limits. A major E&O or data-breach claim, or an enterprise client's contractual requirements, can demand limits well above $1M — an umbrella is the most cost-effective way to reach them.
Commercial Umbrella for Web App & SaaS Companies
A single large claim — a serious E&O loss, a major breach, or a catastrophic liability event — can exceed your primary limits, and enterprise clients increasingly require vendors to carry $3M–$5M in combined limits. A commercial umbrella stacks $1M to $5M of additional limits on top of your general, professional, and (where eligible) tech E&O liability for a fraction of the cost of raising each primary policy.
How It Works
1. Your primary liability: $1M per occurrence 2. A serious claim settles at $2.5M 3. Primary pays $1M; the umbrella pays the remaining $1.5M
Why Web App Companies Carry It
- A single E&O or breach claim can blow past a $1M primary limit
- Enterprise master service agreements often require $2M–$5M combined limits to sign
- Umbrella limits apply across multiple underlying policies — broad protection from one layer
Cost
A $1M umbrella for a software company is typically far cheaper than raising each underlying policy's limit by $1M — efficient catastrophic protection and an easy way to meet enterprise contract requirements.
What's Covered
Frequently Asked Questions
Often when you start landing enterprise clients. Their master service agreements frequently require $2M–$5M combined limits, and an umbrella is the cheapest way to get there. It's also catastrophic protection against a claim that exceeds your primary limits.
Most web app companies carry $1M–$2M. Companies selling into large enterprises or regulated industries are often required to carry $3M–$5M.