Why Pennsylvania Contractors Need an Umbrella Policy — And How Much Coverage Is Enough

A single serious accident on a construction site in Bucks County or Montgomery County can generate a liability claim that exceeds the limits of your standard insurance policies. That's where a commercial umbrella policy comes in — providing an extra layer of protection when you need it most.

What Is a Commercial Umbrella Policy?

A commercial umbrella policy provides additional liability coverage above and beyond the limits of your underlying policies — typically your general liability, commercial auto, and employers' liability (workers' comp). When a covered claim exhausts your underlying policy limits, the umbrella kicks in to cover the excess.

Why Contractors in Pennsylvania Need Umbrella Coverage

Construction is one of the highest-risk industries for large liability claims. Consider these scenarios:

• A worker falls from scaffolding and suffers permanent disability — medical costs and lost wages could easily exceed $1 million
• A subcontractor's error causes a fire that destroys a neighboring property
• A company vehicle causes a multi-car accident on Route 309 in Montgomery County

In each case, a $1 million general liability or auto policy may not be enough. An umbrella policy — typically available in $1 million increments — ensures you're protected against catastrophic losses.

How Much Umbrella Coverage Do You Need?

The right amount depends on your contract requirements, project sizes, and overall risk exposure. As a general guideline:

• Small contractors — $1–2 million umbrella is typically sufficient
• Mid-size contractors — $5 million is a common requirement for commercial projects
• Large general contractors — $10 million or more may be required for major public or private projects

Top Umbrella Carriers for Pennsylvania Contractors

The Stoll Agency places umbrella policies with top-rated carriers including Travelers, The Hartford, Liberty Mutual, and CNA. We'll review your underlying policies and recommend the right umbrella structure for your business.

The Cost of an Umbrella Policy

Commercial umbrella policies are surprisingly affordable relative to the protection they provide. A $1 million umbrella for a small contractor typically costs $500–$1,500 per year. Higher limits and larger operations will cost more, but the cost-per-dollar of coverage decreases significantly as limits increase.