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Umbrella and Excess Liability for Snow Contractors

Many snow contractors first look into umbrella coverage for one reason: a commercial client asked for $5 million in liability and their policy only has $2 million. An umbrella or excess policy is how most contractors close that gap.

How Umbrella and Excess Liability Work

An umbrella or excess policy sits on top of your primary policies, typically your general liability and commercial auto. If a claim exhausts the primary limit, the umbrella can respond above it, up to its own limit.

The terms are often used interchangeably, but there can be differences:

  • Excess liability generally follows the terms of the underlying policy.
  • Umbrella liability may, in some cases, be broader than the underlying policy.

Your broker will explain what your specific policy does.

Why Snow Contractors Need Higher Limits

  • Contract requirements. Property managers, condo corporations, retail landlords, municipalities and institutions commonly require $5 million or more.
  • Serious injuries. Slip and fall injuries on ice can be severe, and claims can exceed a $2 million primary limit.
  • Vehicle exposure. Plowing in busy lots and on roads carries auto liability risk that can also be large.

See $2M vs $5M liability for snow removal and general liability vs umbrella.

What to Check

  1. Which underlying policies the umbrella sits over, including auto.
  2. Whether snow and ice claims and completed operations are covered at the umbrella level.
  3. Whether additional insureds on your primary policy also get umbrella coverage, if your contract requires it.
  4. Minimum underlying limits the umbrella insurer requires.

Common Buyers

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Frequently Asked Questions

How much does umbrella insurance cost for a snow contractor?

It depends on your primary coverage, operations and claims history. Umbrella pricing is usually tied to the risk in your underlying policies.

Can I get $5 million in general liability without an umbrella?

Some insurers offer higher primary limits, but many contractors reach $5 million by combining primary liability with an umbrella or excess policy.