Inputs
Enter your details, then calculate. Results will appear above this form.
How to Use This Calculator
- Choose your industry and enter revenue, payroll, and locations.
- Enter claims and fleet details to reflect severity exposure.
- Set underlying limits to check common attachment assumptions.
- Select an umbrella limit, form type, and retention amount.
- Click Calculate to view results above the form.
- Download CSV or PDF for renewal discussions and budgeting.
Formula Used
The estimator converts your inputs into a base premium using a layer rate curve, then applies multiplicative modifiers that reflect size, loss history, and exposures.
- Base layer premium: BaseRatePer$1M × CurveMultiplier(layer)
- Base pure premium: Σ BaseLayerPremium across all selected $1M layers
- Total modifier: Size × Tenure × Claims × Fleet × Locations × Subcontractors × Exposures × RiskMgmt × Prior × Contracts × Carrier × Form × Underlying × SIR
- Estimated premium: max(MinPremium, BasePurePremium × TotalModifier)
- Effective rate per $1M: EstimatedPremium ÷ LimitInMillions
Curve multipliers reduce the marginal cost of higher layers to reflect typical pricing behavior. This model is intentionally simplified and should be validated against real quotes.
Example Data Table
Sample scenarios to illustrate how changes can move the estimate.
| Scenario | Industry | Revenue | Locations | Vehicles | Claims | Limit | Typical outcome |
|---|---|---|---|---|---|---|---|
| Baseline professional | Office / Professional | $2,500,000 | 1 | 0 | 0 | 5M | Lower modifier, stable pricing |
| Growing retailer | Retail (non-hazard) | $12,000,000 | 6 | 4 | 1 small | 10M | Moderate modifier, higher size effect |
| High-hazard contractor | Contractor (heavy) | $30,000,000 | 3 | 18 | 3 / large | 20M | Higher modifier, higher base rate |
Umbrella limit selection
Start with the largest plausible loss that can exceed underlying liability. A small office with $2.5M revenue often targets 2M–5M. A multi‑site retailer near $12M revenue commonly budgets 10M. Higher‑hazard trades, fleets, or contracts can push planning toward 15M–25M. If a customer contract requires 10M, model 15M to protect renewal negotiations and verdict trends.
Underlying attachment benchmarks
This calculator flags underlying limits below common attachment assumptions: 1M per‑occurrence and 2M aggregate general liability, 1M auto CSL, and 1M employers liability. If underlying is lower, the model applies an adequacy factor, reflecting that carriers may require increases or charge for gaps. Aligning underlying layers first often produces a cleaner umbrella quote set and fewer coverage exclusions.
Rate curve and layer economics
Pricing typically declines on higher layers. The model uses a simple curve: 1.00 on layer 1, 0.85 on layers 2–5, 0.70 on layers 6–10, 0.60 on layers 11–20, and 0.50 after 20M. Example: base rate $650 per $1M and a 10M limit produces base pure premium of $5,135 before modifiers. At 20M, the curve reduces marginal cost, so the effective rate per $1M usually drops.
Loss history and exposure drivers
Claims frequency and severity matter more than headcount. Zero claims earns a credit, while three claims or a largest claim above $100,000 increases the claims factor. Exposure checkboxes compound: liquor adds 15%, work at height adds 10%, hazmat adds 20%, and international operations add 10%. Retention also matters; a $25,000 retention is modeled as a 5% premium reduction, while $100,000 can reduce more.
Budgeting and renewal actions
Estimated premium equals max(minimum premium, base pure premium × total modifier). The total modifier multiplies size, tenure, claims, fleet, locations, subcontracting, exposures, risk management, prior umbrella, contract requirements, carrier quality, form type, underlying adequacy, and retention. Use the premium‑by‑limit chart to compare marginal cost per $1M, then export results for budgeting, marketing, and reporting.
FAQs
What is commercial umbrella insurance?
It provides extra liability limits above underlying policies like general liability, auto liability, and employers liability. It can help protect against severe claims that exceed primary limits and may broaden coverage depending on the form.
How does this calculator estimate premium?
It sums a per‑$1M base rate across layers using a rate curve, then multiplies by factors for size, tenure, claims, fleet, locations, subcontracting, exposures, risk controls, prior coverage, form type, underlying adequacy, and retention.
Why do higher limits sometimes cost less per million?
Umbrella pricing often applies decreasing multipliers to higher layers because catastrophic losses are less frequent. The model reflects this by reducing the layer multiplier after the first million, lowering the marginal cost of added limits.
What inputs affect the estimate the most?
Industry selection sets the starting rate, then claims severity, hazmat, liquor, international work, fleet size, and underlying limit adequacy can move the modifier significantly. Retention and documented risk management can also improve the estimate.
Is the suggested limit a recommendation?
It is a heuristic based on revenue, locations, vehicles, and selected exposures. Use it as a discussion point with your broker or advisor, and consider contract requirements, landlord demands, and your risk tolerance.
Can I use the results as an insurance quote?
No. The output is an educational estimate. Actual pricing depends on carrier filings, underwriting appetite, loss runs, schedules, endorsements, and market conditions. Use the CSV or PDF export to compare options and prepare renewal conversations.