Stack additional millions in liability protection above your primary policies to meet contract demands and protect your company from catastrophic construction claims.
Coverage
Umbrella and Excess Liability for Contractors
Construction projects generate some of the largest liability verdicts in any industry. A crane collapse, a multi-vehicle accident involving a loaded dump truck, or a catastrophic fall from an elevated structure can produce claims that exhaust standard one or two million dollar primary policy limits within the first round of medical bills and legal defense costs. Umbrella and excess liability policies provide additional layers of coverage above your general liability, commercial auto, and employers liability policies, extending your total available limits to five, ten, twenty-five million dollars or more. Project owners and general contractors routinely require umbrella limits as a condition of contract, and insufficient limits can disqualify your firm from bidding on desirable projects. ALKEME structures umbrella and excess programs that satisfy the most demanding contract specifications while providing true catastrophic protection for your business.
Umbrella vs. Excess Liability Explained
The terms umbrella and excess are often used interchangeably, and there is no universal rule that separates them. What matters is the wording of the specific policy. An excess policy may be written on a follow-form basis, adopting the terms and conditions of the underlying policy, or it may be independently worded with its own definitions, conditions, and exclusions that differ from the policy beneath it. A policy labelled umbrella is often marketed as providing some coverage beyond the underlying policies, potentially responding to certain claims the primary excludes and subject to a self-insured retention, but how much broader it actually is depends entirely on the form issued. Some umbrella forms are barely broader than follow-form excess. In construction the distinction matters because a genuine gap between the GL and auto policies may or may not be picked up by the layer above, depending on that layer's wording. ALKEME reads the actual forms on offer and recommends the structure that best fits each client's underlying program rather than relying on the label.
Contract Requirements and Limit Selection
Construction contracts specify minimum umbrella or excess limits that contractors must carry as a condition of performing work. Requirements of five million dollars are standard on mid-size commercial projects, while large infrastructure, institutional, and high-rise projects frequently require ten to twenty-five million dollars or more. Beyond contract compliance, adequate limits protect your company balance sheet from catastrophic verdicts. Nuclear verdicts in construction, meaning jury awards exceeding ten million dollars, have increased significantly in recent years. ALKEME analyzes your project portfolio, contract requirements, and financial exposure to recommend limits that satisfy both contractual obligations and prudent risk management.
Building a Proper Liability Tower
A well-structured liability tower starts with adequate primary limits on your GL, commercial auto, and employers liability policies, because these policies must meet the umbrella carrier minimum underlying limit requirements. The umbrella or first excess layer sits directly above the primary policies, and additional excess layers can be stacked above the umbrella to reach the total limit required. Each layer must attach properly to the one below it, with no gaps in coverage or differences in covered perils that could create uninsured exposure. ALKEME coordinates all layers of the liability tower, ensuring that each carrier understands their attachment point, policy period, and coverage obligations.
Wrap-Up Programs and Project-Specific Excess
Large construction projects often utilize wrap-up insurance programs that consolidate coverage for all project participants under a single set of policies. Owner Controlled Insurance Programs and Contractor Controlled Insurance Programs typically include project-specific excess liability layers that can reach one hundred million dollars or more for major infrastructure and development projects. ALKEME has extensive experience placing wrap-up programs and project-specific excess layers, working with London and domestic excess markets to build towers that satisfy lender requirements, project owner specifications, and regulatory mandates.
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