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LimitsStandard / Universal

Umbrella / Excess - $5M

What this clause says

Umbrella or Excess Liability with a limit of not less than $5,000,000 per occurrence and in the aggregate, sitting in excess of the General Liability, Auto, and Employers Liability policies.

What this means in plain English

A second layer of liability sitting above your primary policies.

What it means for a CDMO program

Verify your umbrella schedules products/completed ops as a covered underlying. Some umbrellas explicitly exclude products for manufacturers, which would make this technically non-compliant even though the umbrella exists.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • umbrella › limit is at least $5M → Compliant: Umbrella meets $5M.
  • umbrella › limit is not set → Gap: No umbrella indicated.

See this in your MSA

Map this clause against your sponsor MSA.

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Related clauses

Common questions about this clause

Questions about limits

Umbrella / Excess - $5M - common questions

Does the umbrella have to follow form?

Sponsors usually require it. Follow-form umbrellas drop down with the same coverage terms as the underlying. Non-follow-form (or "broader-than-underlying") umbrellas can have gaps relative to the primary.

Can a stand-alone excess satisfy the umbrella requirement?

Sometimes - depends on the MSA wording. If the requirement is "umbrella or excess", yes. If it specifies "umbrella" only, you may need a true umbrella structure.

What is the typical umbrella limit alongside $5M products?

$4M-$5M umbrella sitting over a $1M primary CGL is standard. Total products-tower limit becomes $5M.