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Alabama umbrella and excess liability: check program and subcontractor limits

If you work on the Strengthen Alabama Homes (SAH) program, its rule sets a specific umbrella floor: the contractor and each subcontractor must independently show $1 million per occurrence and aggregate. That is a program eligibility condition for licensed residential home builders, not a statewide umbrella mandate. Check the actual contract and each underlying policy before treating a larger limit as responsive. 1

What Is Umbrella And Excess Liability?

Umbrella or excess insurance adds liability limits above the policies named in the quote after a covered claim exhausts their limits. It may fit if a contract sets higher limits; check which primary policies are listed and any gaps between them. Read the national Umbrella and excess liability guide.

Alabama Requirements

RequirementDetails
SAH program umbrella floor$1 million each occurrence and aggregate, separately evidenced by the contractor and each subcontractor used. Applies to eligible SAH program contractors, not every Alabama business. 1
SAH underlying scheduleThe same SAH rule specifies general liability, owned/non-owned/hired auto, employers liability and contractor E&O. Confirm these scheduled underlying lines and terms with the umbrella quote. 1
Workers’ compensation contextAlabama generally exempts businesses regularly employing fewer than five people, but not businesses constructing or on-site assisting with new detached single-family homes; other listed categories have separate exceptions. 2

What to Watch for in Alabama

  • Get each subcontractor’s own layer evidence

    SAH requires every subcontractor independently to provide the listed umbrella and primary proofs. A prime contractor’s certificate does not satisfy this program rule for its subs; collect each sub’s declarations and endorsements before mobilization. 1

  • Separate SAH from ordinary private work

    The $1 million umbrella number belongs to SAH participation. The rule does not establish what a private owner, lender or different public buyer will require, and meeting the program minimum does not promise that a policy covers every project claim. 1

  • Do not count umbrella toward workers’ compensation

    The Alabama rule separately requires compliance with state and federal workers’ compensation laws. The labor department’s small-employer exception has a specific new-home construction carveout; excess liability is not a substitute for statutory compensation coverage. 1,2

Who Regulates Insurance in Alabama

Alabama Department of Insurance

The Alabama Department of Insurance oversees insurers and licensed producers, reviews insurance filings, and takes consumer complaints. Its online services page links directly to Alabama company and agent searches, licensing resources, and complaint filing. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 6% of taxable surplus-lines premium Alabama’s 6% tax applies to surplus-lines premium when Alabama is the insured’s home state; until the state’s multistate compact clearinghouse is operational, Alabama guidance says 100% of the premium on a multistate policy is taxed here. Separately charged policy fees are taxable. Surplus-lines policies do not receive Alabama guaranty-fund protection if the insurer becomes insolvent. 6,7,9,8,12

  • Alabama's diligent-search rule has two exceptions: A broker generally must make diligent effort before a surplus-lines placement; Alabama guidance says three declinations satisfy it. For an exempt commercial purchaser, 15 U.S.C. § 8205 removes that search only after the broker discloses the admitted-market protection difference and the purchaser then requests placement in writing. 8,10,11

Providers With Documented State Licenses

These providers publish a national listing for Umbrella and excess liability; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Alabama. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 15
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 18
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 19

Questions to Ask Before You Buy in Alabama

  1. If my SAH subcontractor has a $1 million umbrella certificate, what underlying auto, GL, employers-liability and E&O policies and endorsements must the program see?
  2. Does the umbrella schedule name every policy and subcontractor exposure involved in this job, and how does its aggregate respond after another project uses limits?
  3. For work outside SAH, which contract clause sets the required limits, and does it permit excess limits to satisfy primary-policy limits?

Umbrella And Excess Liability in Alabama: FAQ

Does Alabama require every small business to buy umbrella insurance? 1

The cited $1 million figure is specific to contractors and subcontractors in the SAH program. It is not a general statewide purchase mandate; use the limits in your own contract and risk review. 1

Can an Alabama employer with fewer than five workers omit workers’ compensation? 2

The labor department describes an exception for regularly employing fewer than five people, but excludes businesses constructing or on-site assisting with new detached single-family homes and lists other exceptions. Check the facts and statute; an umbrella does not replace workers’ compensation. 2

Umbrella And Excess Liability in Other States

Other Coverage in Alabama

Sources

  1. Strengthen Alabama Homes, Ala. Admin. Code r. 482-1-159-.06. Alabama Legislature / Department of Insurance; Contractor eligibility; revised 1/1/2025; paras. (a)–(f), especially umbrella limits and subcontractor proof. Accessed 2026-09-28.
  2. Workers’ Compensation Insurance Requirements. Alabama Department of Labor; Employer insurance requirements and exceptions; employer page, lines 63–65. Accessed 2026-09-28.
  3. Alabama Department of Insurance. Alabama Department of Insurance; Official agency homepage. Accessed 2026-09-28.
  4. Online Services. Alabama Department of Insurance; Links to Alabama company search, agent search, producer licensing, and consumer complaint services. Accessed 2026-09-28.
  5. File a Consumer Complaint. Alabama Department of Insurance; Official online complaint process. Accessed 2026-09-28.
  6. Code of Alabama § 27-10-31: Annual Tax of Surplus Line Brokers. Alabama Legislature; Six percent tax on direct surplus-lines premiums, less return premiums and excluding state or federal taxes. Accessed 2026-09-28.
  7. Surplus Line Broker FAQs. Alabama Department of Insurance; Page 2: per-policy fees are subject to the surplus-lines broker tax under § 27-10-31. Accessed 2026-09-28.
  8. Surplus Line Broker Requirements. Alabama Department of Insurance; Current broker licensing and diligent-effort placement requirements. Accessed 2026-09-28.
  9. Surplus Lines. National Association of Insurance Commissioners; Explains that state guaranty-fund protection available in the admitted market is not available for surplus-lines policies. Accessed 2026-09-28.
  10. Surplus Line Broker FAQs. Alabama Department of Insurance; FAQ: three declinations satisfy Alabama diligent effort; FAQ references 15 U.S.C. § 8205 as a separate exception. Accessed 2026-09-28.
  11. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
  12. Instructions for Multi-State Policies. Alabama Department of Insurance; Current instruction: until SLIMPACT clearinghouse is operational, if Alabama is home state of a multistate policy, 100% of premium is taxed at 6% and remitted to Alabama. Accessed 2026-09-28.
  13. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  14. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  15. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  16. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  17. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  18. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  19. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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