Glossary
Umbrella / excess liability
Additional limits sitting above underlying policies (GL, auto, employers liability). Note that standard umbrellas usually do not extend professional liability — higher…
What is umbrella / excess liability?
Additional limits sitting above underlying policies (GL, auto, employers liability). Note that standard umbrellas usually do not extend professional liability — higher E&O limits require excess E&O.
Why it matters
Umbrella coverage stacks extra limits above your underlying policies for the catastrophic claim that pierces them. Contracts requiring $2M+ are often satisfied most cheaply with a $1M base plus a $1M umbrella rather than a bigger primary policy.