Coverage Guide
Umbrella / Excess Liability Insurance
When your other policies aren't enough.
Umbrella insurance (also called excess liability) provides an additional layer of coverage above the limits of your underlying policies — general liability, commercial auto, and employer's liability. When a claim exceeds your primary policy's limits, your umbrella policy kicks in to cover the difference.
What It Covers.
Excess Liability Limits
The Risk
A catastrophic accident results in a judgment that exceeds your general liability policy's $1 million limit. You're personally responsible for the difference.
The Solution
Your umbrella policy provides additional coverage — typically $1 million to $10 million — above your underlying policy limits.
Broader Coverage
The Risk
A claim falls into a gap between your existing policies, or involves a situation your primary policies cover but with restrictive terms.
The Solution
Many umbrella policies provide broader coverage than underlying policies, filling gaps that would otherwise leave you exposed.
Multi-Policy Protection
The Risk
A single incident triggers claims against multiple policies — a vehicle accident that involves both auto liability and general liability.
The Solution
Your umbrella policy sits above all underlying policies, providing a single additional layer of protection regardless of which primary policy is triggered.
Who Needs This?
Any business with significant assets to protect, high-risk operations, or contractual requirements for higher liability limits. The cost is relatively low for the amount of additional protection.
- Construction firms with large project contracts
- Businesses with company vehicles and drivers
- Companies with high foot traffic or public exposure
- Any business required to carry higher limits by contract
What Happens Without It?
Scenario
A serious accident at your construction site injures multiple workers. Total claims reach $3.5 million, but your general liability policy has a $1 million limit.
Consequence
You're personally responsible for the $2.5 million gap. An umbrella policy with a $5 million limit would have covered the entire excess — often for just a few thousand dollars per year in premium.
Real-World Example.
Situation
A delivery driver causes a multi-vehicle accident with severe injuries. The total judgment is $2.8 million, but the company's commercial auto policy has a $1 million limit.
Outcome With Coverage
The company's $5 million umbrella policy covers the remaining $1.8 million, protecting the business owner's personal assets and keeping the company solvent.
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Related Coverages.
Often paired with Umbrella / Excess for comprehensive protection.