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Coverage Guide

Umbrella / Excess Liability Insurance

When your other policies aren't enough.

Umbrella and excess liability insurance provide additional coverage above the limits of your underlying policies — general liability, commercial auto, and employer's liability. While excess policies strictly follow the terms of your underlying coverage, umbrella policies can also provide broader protection, sometimes covering claims that fall outside your primary policies. When a claim exceeds your primary policy's limits, this additional layer 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 or excess policy provides additional coverage — typically $1 million to $10 million or more — 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

Some umbrella policies provide broader coverage than underlying policies, potentially filling gaps that would otherwise leave you exposed. The scope of this broader coverage varies by policy.

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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Disclaimer: The coverage descriptions on this page are general summaries intended for informational purposes only. They do not constitute insurance advice, nor do they modify, amend, or supplement any insurance policy. Actual policy terms, conditions, exclusions, and limitations vary by carrier, state, and individual risk profile. Please refer to your specific policy documents for complete details, or contact us to discuss your coverage needs with a licensed agent.