Umbrella Insurance
Commercial Umbrella liability, also known as excess liability, provides coverage in addition to the limits existing with an insured's General Liability, Automobile Liability, and Employers Liability (underlying or primary) policies. Umbrellas also protect insureds from exclusions and gaps in their primary liability policies that serve as underlying insurance. Covered causes of loss that are not normally included in primary policies are subject to a self-insured retention (SIR) which is the responsibility of the insured to pay. SIRs in the amounts of $10,000 or $25,000 for example are common. An Umbrella policy's coverage is triggered when the limits of the underlying insurance have been exhausted, or when a claim develops that is not covered by an underlying policy and exceeds the self- insured retention.
Principal features of most Umbrella policies typically consist of the following:
- World-wide coverage
- Personal Injury coverage
- Blanket Contractual Liability coverage for both written and oral contracts
- Care, Custody and Control coverage
- Non-owned Aircraft Liability
- Watercraft Liability
- Advertisers Liability
- Liquor Law Liability
- X. C. U. Liability
- Automatic coverage for additional insureds
Exclusions and Limitations
There are exclusions and limitations to a Commercial Umbrella Liability policy that are typically known as a "following form," meaning that it tracks with the provisions of the underlying insurance. In other words, the typical umbrella coverage is an extension of the exclusions and limitations that apply to its underlying policies.
Special Note: This summary outlines in general terms the coverages afforded under some policies. Examine the policy carefully for any exclusions, limitations, or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.