Commercial Umbrella Insurance Limit Gap Calculator

Stress test a catastrophic liability scenario by stacking your primary limits, umbrella tower, and self-insured retention. Enter the loss size you are modeling along with policy limits to surface how much exposure remains on your balance sheet and the cash you must be ready to fund immediately.

Total projected loss from a severe liability claim, including verdict, settlement, and defense costs you want to stress test.
Combined occurrence limit across your underlying general liability, auto, and employer's liability policies that attach before the umbrella.
Total limit provided by your commercial umbrella or excess liability tower.
Optional. Enter any self-insured retention or large deductible that must be paid before the umbrella responds. Defaults to $0 if left blank.
Optional. Likelihood of this catastrophic claim occurring within a year. Defaults to 0% if left blank.

Insurance modelling tool for planning only. Confirm actual coverage structure, endorsements, and retention triggers with your broker or carrier.

Examples

  • $10,000,000 loss, $1,000,000 primary, $5,000,000 umbrella, $250,000 retention, 2% probability ⇒ Total liability protection: $6,000,000.00 USD • Uninsured loss exposure: $4,000,000.00 USD • Self-insured retention cash needed: $250,000.00 USD • Combined out-of-pocket worst case: $4,250,000.00 USD • Expected uncovered cost at 2.00%: $85,000.00 USD • Coverage saturation: 60.00%.
  • $3,500,000 loss, $2,000,000 primary, $3,000,000 umbrella, no retention, probability blank ⇒ Total liability protection: $5,000,000.00 USD • Uninsured loss exposure: $0.00 USD • Self-insured retention cash needed: $0.00 USD • Combined out-of-pocket worst case: $0.00 USD • Expected uncovered cost at 0.00%: $0.00 USD • Coverage saturation: 100.00%.

FAQ

How should I choose the catastrophic loss amount?

Use scenario planning from your broker, industry verdict data, or internal risk assessments to frame a realistic but severe loss, then rerun the tool with optimistic and pessimistic figures.

Can I include multiple umbrella layers?

Yes. Add up the limits across every umbrella or excess layer you have in place so the calculator reflects the full tower of protection.

What if my umbrella requires exhausted aggregate limits?

Model the aggregate exposure separately to confirm you can actually access the umbrella limit when a large claim hits. If aggregates are partially used, reduce the primary limit input accordingly.

How do I treat defense costs that erode limits?

Include expected defense spend inside the catastrophic loss amount so the tool accounts for any burn-off that reduces the limit left for indemnity payments.

Additional Information

  • Primary and umbrella limits are added together to show the total liability protection before considering any gaps.
  • Self-insured retention is capped at the modeled loss amount so the calculator never overstates required cash.
  • Expected uncovered cost multiplies the worst-case out-of-pocket spend by the probability provided for quick risk prioritisation.

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