Excess Liability coverage grants extended limits above those of a basic business liability insurance policy. For instance, if you have a basic policy with limits at $1,000,000 and it is exhausted by claims, the umbrella will pay the excess. Therefore, any amount over the $1,000,000 limit is paid out by the umbrella policy – whose limit can be as high as $10,000,000, $25,000,000, or even more. General Liability coverage can also account for gaps in coverage under basic liability policies.
The primary objective of umbrella protection is to provide an additional amount of liability insurance over the following basic policy types:
- General Liability
- Hired Auto and Non-Owned Auto Liability
- Employer’s Liability
It is important to understand that this coverage does not extend the coverage limits on an errors and omissions or professional liability policy.