An umbrella insurance provides additional liability coverage, above the limits of underlying policies.
Personal umbrella policies provide additional liability beyond the limits of underlying personal auto, home, fire dwelling, boat and/or motorcycle policies. Commercial Umbrella policies provide additional liability in excess of underlying General liability, Business owners, Business auto, Directors & Officers, Rental property policies and the Employer’s liability portion of a Worker’s compensation policy.
In the event of a claim, if the underlying policy liability limit is exhausted, the umbrella policy will provide additional coverage up to the policy limit. In most cases, the umbrella policy will cover the same types of claims as the underlying policies.