An Umbrella Liability Insurance policy provides additional protection to businesses by providing additional limits of liability offered by underlying liability policies such as Business Auto, General Liability, and Employers Liability. The words “excess” or “umbrella” are used interchangeably to describe limits of insurance in over their underlying policies. However, sometimes excess coverage refers to covering auto liability and general liability only while not covering over the Employer’s Liability policy .
In addition, some Umbrella Liability insurance policies may offer seperate protection and can actually cover some claims that may be excluded under General Liability, Business Auto, and Employers’ Liability policies. Most Umbrella coverage is subject to a Self Insured Retention which acts like a deductible.
The cost of Umbrella Liability Insurance may vary but as a general rule of thumb the first $1,000,000 layer of coverage is typically a percentage of the premiums for the underlying Business Auto Liability and General Liability.