Umbrella & Excess Liability
Additional liability protection when your business needs coverage beyond its primary insurance limits.
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What Is Umbrella & Excess Liability Insurance?
Umbrella and excess liability insurance provide additional liability protection above certain underlying insurance policies. These coverages can help businesses manage large claims that exceed their primary policy limits, particularly when contracts or business operations create greater liability exposure.
Additional Liability Limits
Umbrella and excess liability policies can provide additional limits when a covered claim exhausts the applicable limits of an underlying policy, subject to the terms and conditions of the excess coverage.
Umbrella vs. Excess Liability
Excess liability insurance generally provides additional limits over specified underlying coverage. Commercial umbrella insurance may offer broader protection in certain circumstances, depending on the policy. Neither automatically covers every claim excluded by the underlying insurance.
Underlying Insurance Requirements
Insurers typically require businesses to maintain specified underlying policies and minimum liability limits. These may include commercial general liability, commercial auto liability, or employers liability, depending on the umbrella or excess policy.
Contractual Insurance Requirements
General contractors, subcontractors, and businesses working under commercial or government contracts may be required to carry higher liability limits. Umbrella or excess coverage can sometimes help satisfy these requirements when the policy terms align with the contract.
Following Form & Coverage Differences
Some excess policies follow the terms of underlying insurance, while others contain additional exclusions, conditions, or limitations. Businesses should verify whether important provisions, such as additional insured status or per-project aggregates, apply to the excess layer.
Understanding Coverage Layers
Liability coverage can be structured in layers, with a primary policy responding first and excess policies potentially responding after applicable underlying limits are exhausted. Businesses should review attachment points, aggregate limits, exclusions, and how multiple policies work together.
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