Umbrella & Excess Liability
An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's homeowners, auto, or watercraft insurance. It provides an additional layer of security to those who are at risk of being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy.
People who regularly purchase umbrella insurance will usually own expensive property or have significant savings. Or they may own dangerous things that can cause injury (swimming pools, trampolines, dogs, etc.). They might also engage in activities that increase their chances of lawsuits, such as:
- Being a landlord
- Coaching kids’ sports
- Serving on the board of a nonprofit
- Regularly posting reviews of products and businesses
- Participating in sports where you could easily injure others (skiing, surfing, hunting, etc.)
Commercial Businesses can also purchase Umbrella policies for their businesses that provide coverage in a similar manner. However, most commercial insurance carrier prefer to issue Excess Liability coverage which does not provide coverage for any gaps in the General Liability policy.
This is usually offered to Commercial Businesses as Excess Liability insurance is a type of policy that provides limits that exceed the underlying liability policy. It does not broaden the stated coverage but will provide higher limits on top of the original policy. The Excess Liability policy is triggered when the primary General Liability limits are exhausted due to claim activity.
We recommend purchasing Personal Umbrella coverage for Homeowners in most instances as your home is usually the most valuable asset.
We recommend Excess Liability coverage for Business Owners who have heightened risk for claim activity such as contractors working on multi-million dollar homes, businesses with high income, businesses with driving exposures, etc.