Umbrella and excess liability insurance provides extra protection when your primary insurance policies reach their coverage limits. It acts as a financial safety net for your business, helping cover large or unexpected liability claims that could otherwise be financially devastating.

This coverage sits “on top” of your general liability, auto liability, employer’s liability, or other base policies, extending both limits and sometimes the scope of protection.

Key Benefits of Umbrella and Excess Liability Insurance

1. Higher Coverage Limits

Umbrella/excess insurance provides additional limits beyond your primary policies.
For example, if your general liability policy has a $1 million limit, an umbrella policy can add $5 million or more on top of that. This extra cushion is essential in the event of a catastrophic claim or lawsuit.

2. Broader Protection Across Policies

This coverage can apply across multiple policy types, including:

• Commercial General Liability

• Commercial Auto Liability

• Employer’s Liability
  This creates a comprehensive insurance strategy by bridging gaps between various policies.

3. Excess Coverage After Limits Are Reached

Umbrella and excess policies activate only after your base policy limits are exhausted.
This “excess layer” gives your business the financial strength to manage serious or unexpected legal claims.

What Does Umbrella/Excess Liability Cover?

4. Additional Risk Protection

Some umbrella policies may cover risks excluded from primary policies, such as:

• Libel and slander

• Defamation or false arrest

• Invasion of privacy

These exposures are often overlooked but can carry significant financial consequences.

5. Legal Defense Costs

Most umbrella policies include legal defense coverage.
This means they help pay for:

• Attorney fees

• Court costs

• Settlement negotiations
  This protection is vital during lengthy or complex lawsuits.

6. Worldwide Coverage

Umbrella/excess insurance often includes international protection, which is especially important for businesses with:

• Global clients

• Remote workers

• Overseas operations

Final Thoughts

Umbrella/excess liability insurance is not a standalone policy. Instead, it is designed to work with your existing liability coverages to:

• Extend limits

• Fill coverage gaps

• Offer added peace of mind

If your business is growing, taking on more risk, or expanding internationally, umbrella/excess liability insurance may be a smart investment.