Back to Spring 2022 Issue

All About Commercial Umbrella

Spring 2022 Issue

By Steve Ursin, Marketing Representative

As our commercial umbrella program nears its second birthday, we wanted to highlight the product for agents who may be unfamiliar with it.

The commercial umbrella (CU) program was developed to give our agents the flexibility to offer their insureds an additional layer of liability insurance protection for their small businesses. The basic per occurrence limit is $1 million and limits up to $5 million are available on a case-by-case basis.

Program Basics

Who is eligible?

1st Auto requires that the business auto policy (if any) be written with 1st Auto.

What kinds of risks are eligible for coverage?

This program can cover a variety of businesses:

  • Habitational: Single family to hotel/motel
  • Commercial or mercantile property rented to others
  • Offices
  • Farms
  • Retail stores
  • Contractors
  • Restaurant/bar

Who has binding authority?

Unlike the personal auto, personal umbrella and business auto programs, all applications must be submitted through 1st Otto-mation for underwriter approval.

Will 1st Auto write a standalone/monoline umbrella?

Since our primary underlying requirement for umbrella coverage is that the business auto policy be written with 1st Auto, if a customer has no owned business auto exposure, we will consider providing standalone umbrella coverage.

How much does a commercial umbrella policy cost?

Annual minimum premiums per $1 million range from $350 to $500.

Where can I get more information on this program?

The commercial umbrella underwriting manual can be found in 1st Otto-mation. From the Home page, select Cabinets, and then your state. You also can contact your underwriter or 1st Auto marketing representative. For questions on specific risks, please contact your primary 1st Auto underwriter.