UMBRELLA / EXCESS LIABILITY
This policy provides additional coverage once another policy limit is reached. It can boost coverage on general liability insurance and other liability policies.
What Is Umbrella Liability Insurance?
Once a another policy’s limit is reached, umbrella insurance (or excess liability insurance) provides additional funds for claims made on general liability, commercial auto, or employer’s liability insurance.
Umbrella insurance can give you $1 million in coverage* on top of your auto or homeowners policy limits. If you injure someone or damage their property, you might not have enough coverage. An umbrella policy could save you from paying out of your own pocket.
When do businesses need umbrella liability insurance? Umbrella liability insurance, also called excess liability insurance, boosts the coverage limits of an existing liability policy. Businesses that purchase this policy usually need it to fulfill a contract that requests higher than standard policy limits. For example, if a client contract required a general liability policy with a $5 million limit, an umbrella policy of $4 million would be added to your existing $1 million general liability policy.
If a lawsuit ends up costing more than your liability insurance policy limit, commercial umbrella coverage frees up additional funds so you don’t end up paying out of pocket. An umbrella policy is often a cheaper option than increasing the limits on your liability insurance.
Umbrella insurance can supplement liability coverages of:
General liability insurance
Employer's liability insurance (often included in workers' compensation)
Commercial auto insurance
What situations could umbrella insurance cover?
Injuries to other people if you're at fault
Damage to other people's property
Injuries or damage caused by your renters
Certain lawsuits, like slander and defamation
Why buy umbrella insurance?
Without an umbrella policy, you could lose your home and savings due to a major claim.
Liability claims are often expensive. You might have to work for years to pay off a claim.
Lawsuits can happen to anyone. You can be sued even if you're not wealthy or at-fault.
