Umbrella Liability / Excess Liability Coverage
What is Umbrella Liability / Excess Liability Insurance?
Umbrella Liability (also known as Excess Liability) gives you additional coverage
when a claim exceeds an underlying policy's insurance limits. For example, if your
General Liability policy provides $1 million in coverage, but your claim
settlement calls for $1.5 million, your umbrella policy would cover that additional
For a single premium, you can add an Umbrella Liability policy
Hired and Non-Owned Auto Liability, and employers liability coverage.
However, umbrella coverage cannot be used to supplement a Professional Liability
Umbrella Liability coverage may be described in your contract this way:
"Commercial Excess Liability Insurance in the amount of $1,000,000."
Why do I need Umbrella Liability / Excess Liability Insurance?
The primary feature of umbrella protection is an additional amount of liability
insurance, in increments of $1,000,000, that is excess over "basic" general liability,
automobile liability, and employers liability coverage (the company liability part
workers compensation policy).
A critical area is the additional coverage for auto accidents that occur while an
employee is driving on company business. The catastrophic results of car/truck accidents
on interstate highways and local roads underscore the need by every business for
high limits of liability insurance.
Computer and IT services firms as a rule do not perceive that they have much risk
when it comes to bodily injury and property damage claims. The exception is claims
arising from the use of automobiles and workplace accidents covered by workers compensation
insurance. The high limits provided by an umbrella policy are a sound recommendation.
Umbrella Liability Related Resources