Commercial Umbrella Insurance for Myrtle Beach Businesses

What Is Commercial Umbrella Insurance?

Commercial umbrella insurance provides an extra layer of liability protection that kicks in when your primary policy limits are exhausted. If a claim exceeds the limits on your general liability, commercial auto, or employers liability policy, your commercial umbrella coverage pays the excess—up to the umbrella policy limit.

For Myrtle Beach businesses, commercial umbrella insurance serves as a financial backstop against catastrophic liability claims. A severe auto accident, a major injury on your premises, or a lawsuit with substantial damages can quickly exceed standard policy limits. Without umbrella coverage, your business assets—and potentially your personal assets—are exposed to the excess.

Why Myrtle Beach Businesses Need Commercial Umbrella Insurance

Standard liability policies have limits. When claims exceed those limits, you pay the difference out of pocket. Commercial umbrella insurance addresses this exposure:

• Catastrophic claims happen. A multi-vehicle accident involving your company truck, a serious slip-and-fall injury, or a product liability lawsuit can generate claims in the millions. Your $1 million general liability policy won't cover a $3 million judgment.


• Legal defense costs add up. Defending against a major lawsuit can cost hundreds of thousands in attorney fees, expert witnesses, and court costs. These expenses erode your liability limits before any settlement or judgment is paid.


• Business assets are at stake. When liability coverage runs out, plaintiffs pursue your business assets—equipment, inventory, accounts receivable, real estate. A commercial umbrella policy protects what you've built.


• Personal assets may be exposed. Depending on your business structure, personal assets could be at risk in a lawsuit that exceeds your coverage. Umbrella insurance provides a buffer.


• Contract requirements are increasing. Many commercial clients, property owners, and general contractors in South Carolina now require vendors to carry $2 million, $5 million, or higher liability limits. Commercial umbrella coverage helps you meet these requirements affordably.

How Does Commercial Umbrella Insurance Work?

Commercial umbrella insurance sits above your primary liability policies. Here's the sequence when a covered claim occurs:

Your underlying policy responds first. If someone is injured at your Myrtle Beach business and sues for $1.5 million, your general liability policy pays up to its limit—say, $1 million per occurrence.

The umbrella policy pays the excess. Once your general liability limit is exhausted, your commercial umbrella coverage picks up the remaining $500,000, up to the umbrella policy limit.

Coverage stacks on top of multiple policies. Commercial umbrella insurance typically extends over your general liability, commercial auto liability, and employers liability coverage. One umbrella policy provides excess limits across all these exposures.

Underlying Policy Requirements

To purchase commercial umbrella coverage, you must maintain minimum limits on your underlying policies. Requirements vary by carrier, but typical minimums include:

• General liability: $1 million per occurrence / $2 million aggregate


• Commercial auto: $1 million combined single limit


• Employers liability: $500,000 per accident / $500,000 disease per employee / $500,000 disease policy limit

If your current policies don't meet these thresholds, you'll need to increase your underlying limits before adding umbrella coverage. Moore & Associates can help coordinate this across your policies.

What Does Commercial Umbrella Insurance Cover?

Commercial umbrella policies provide excess coverage for the same types of claims your underlying policies cover:

Bodily injury liability. When someone is injured due to your business operations, products, or premises—whether a customer at your Surfside Beach retail location or a pedestrian hit by your delivery truck—umbrella coverage provides additional limits above your primary policies.

Property damage liability. If your operations damage someone else's property and the claim exceeds your underlying limits, commercial umbrella insurance responds to the excess.

Personal and advertising injury. Claims of libel, slander, false arrest, or copyright infringement in advertising that exceed your general liability limits are covered by your umbrella policy.

Auto liability. Serious vehicle accidents generate the largest liability claims most businesses face. Commercial umbrella coverage provides crucial additional limits when your commercial auto policy isn't enough.

Employers liability. When employees sue for workplace injuries outside the workers compensation system—such as third-party-over claims or allegations of intentional harm—umbrella coverage adds protection above your employers liability limits.

Drop-Down Coverage

Some commercial umbrella policies provide broader coverage than underlying policies for certain claim types. When an umbrella policy covers a claim that underlying policies exclude, the umbrella "drops down" to provide primary coverage—subject to a self-insured retention you pay out of pocket. This feature varies significantly between carriers, so policy comparison matters.

Commercial Umbrella vs. Excess Liability Insurance

These terms are sometimes used interchangeably, but technical differences exist:

Commercial umbrella policies typically provide broader coverage than underlying policies. They may cover claims that underlying policies exclude, drop down to act as primary coverage in certain situations, and provide defense costs in addition to policy limits.

Excess liability policies follow the exact terms of underlying coverage. They only pay when underlying policies pay and don't expand coverage beyond what primary policies provide.

Most small and mid-sized Myrtle Beach businesses purchase commercial umbrella coverage for its broader protection. Larger companies with complex insurance programs sometimes use true excess policies that stack precisely on specific underlying coverage.

How Much Commercial Umbrella Coverage Do You Need?

Determining appropriate umbrella limits requires evaluating your total liability exposure:

Assess your assets. Consider everything a plaintiff could pursue—business real estate, equipment, vehicles, inventory, cash, accounts receivable. Your umbrella limit should help protect these assets from catastrophic claims.

Evaluate your risk profile. Businesses with vehicles on the road, public-facing operations, or products that could cause injury face higher catastrophic claim potential than professional offices with limited public exposure.

Consider contract requirements. If clients or partners require specific liability limits, your umbrella coverage needs to meet those thresholds.

Think about worst-case scenarios. What's the largest claim your business could realistically face? A multi-fatality vehicle accident? A fire that spreads to neighboring properties? Size your umbrella coverage accordingly.

Common commercial umbrella limits range from $1 million to $5 million for small and mid-sized South Carolina businesses. Larger operations or those with significant exposure may carry $10 million or higher.

How Much Does Commercial Umbrella Insurance Cost in South Carolina?

Commercial umbrella coverage is remarkably affordable relative to the protection it provides. Premiums depend on several factors:

• Umbrella limit selected. Higher limits cost more, though pricing isn't linear—a $2 million policy costs less than double a $1 million policy.


• Underlying exposure. Your general liability, auto, and employers liability premiums reflect your risk profile. Higher underlying premiums typically mean higher umbrella costs.


• Industry classification. Contractors and manufacturers pay more than professional services firms due to different liability exposure.


• Claims history. Past liability claims affect umbrella pricing just as they affect underlying policies.


• Fleet size and driver records. Businesses with multiple vehicles or drivers with violations pay higher umbrella premiums due to increased auto liability exposure.

A small Myrtle Beach business might pay $500 to $1,500 annually for a $1 million commercial umbrella policy. The cost per million decreases as limits increase—a $5 million policy might cost $2,000 to $4,000, not five times the $1 million premium.

Why Work with Moore & Associates for Commercial Umbrella Insurance

Moore & Associates has served Myrtle Beach businesses since 1979. As an independent insurance agency, we work with multiple carriers offering commercial umbrella coverage in South Carolina. This lets us compare options, coordinate underlying policy requirements, and find competitive pricing for your specific situation.

Our local agents understand the liability exposures facing Grand Strand businesses. We help companies from Conway to Georgetown evaluate their umbrella needs, ensure underlying policies meet carrier requirements, and structure coverage that actually protects their assets.

Get a Commercial Umbrella Insurance Quote in Myrtle Beach, South Carolina

Our commercial umbrella insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.