WEDNESDAY, JULY 27, 2022
In the insurance world there are two ways to provide additional Liability protection above the limits of your primary insurance policies. Both Excess Liability and Umbrella policies protect insureds against large liability claims or judgments and takes over when underlying liability limits have been exhausted. Examples of underlying policies are General Liability, Auto Liability, Employers Liability and Personal Liability. These are just a few of the underlying coverages and policies an Excess Liability or Umbrella policy could go over to provide the added protection. 
An Excess Liability policy offers additional liability limits above those covered on the underlying policy. The coverage form on the Excess Liability policy is more restrictive when compared to an Umbrella policy. The Excess policy offers additional Liability limits once the underlying policy reaches its limit as described on the declarations page. The purpose of the Excess policy is to add an extra layer of protection over the underlying liability policy that a person already has. This policy is typically just an extension of the coverage provided by the underlying policies.
The Umbrella policy is a form of Excess Liability as it does provide additional liability limits in excess of the underlying liability policies. The biggest difference with an Umbrella policy is that it can provide broader coverage even if there is no coverage in the underlying liability policy. One example is it can extend coverage to include worldwide coverage. With the broadened coverage offered on an Umbrella policy this type of coverage is usually the best option available to an insured.
Both Excess Liability and Umbrella policies are great options to add an extra layer of protection that goes above and beyond the primary insurance policy. Talking to your insurance representative can help further explain the differences and help identify the best option based on your needs. It is important to ensure you have the proper underlying coverage and limits then to determine the best option and limit of the Excess Liability or Umbrella policy.
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