Umbrella Coverage
This is an optional policy that many businesses take out because they want another layer of coverage over the underlying general liability, business auto, work comp employers liability and any other liability policy they have. A true umbrella policy not only adds a million limit over underlying policies, it drops down to replace coverage when used up due to losses. Usually over a self insured retention i.e. deductible ($10,000) it will respond first dollar on losses not covered under any underlying policy. It is usually cheaper if you needed a $2,000,000 limit to have a $1,000,000 umbrella over a $1,000,000 underlying policy than to have say $2,000,000 general liability, $2,000,000 business auto and $2,000,000 work comp.


This is a brief overview of some key elements of Umbrella Liability coverage. It is not intended to be a comprehensive analysis, you should always read your policy for complete descriptions of coverage's and limits as well as conditions and exclusions and ask your agent if you have any questions.