Does my Ontario corporation need umbrella insurance on top of its general liability policy?

Umbrella, or excess, liability insurance provides additional coverage above the limits of your existing policies, such as commercial general liability or auto, once a claim exceeds what those underlying policies pay out, rather than covering new categories of risk on its own. Whether your corporation needs it depends largely on your risk exposure relative to your existing limits: a business with significant public foot traffic, higher-value contracts, substantial assets to protect, or operations where a serious injury is plausible may find that a standard CGL limit is not enough if a major claim occurs.

Umbrella coverage is often relatively inexpensive per dollar of additional coverage compared to raising the limits on your underlying policies directly, which is why many businesses use it rather than simply buying a larger primary policy. It is also increasingly common for larger clients, landlords, or contracts to require a minimum combined liability limit that a standard policy alone does not meet, making umbrella coverage a practical requirement in those relationships rather than an optional extra. An insurance broker who understands your specific contracts and risk profile is best placed to assess whether your current limits are adequate.