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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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