Umbrella and Excess Liability Coverage

Commercial Umbrella Liability (also known as “Excess Liability”) covers high-dollar liability claims that exhaust the underlying coverage limits provided by Auto Liability, General Liability, Employers Liability and other primary liability policies. Only a small number of claims ever reach the Excess/Umbrella layer of protection. However, if this important protection is not written properly the results can be catastrophic.

When different insurers cover the primary liability program, coverage disputes can occur between those companies and the Excess/Umbrella Liability carriers. Potential areas for litigation include Following-Form requirements, Impaired Aggregates, and Self-Insured Retentions. Umbrella/Excess Liability policies are typically drafted by each carrier. There is no standard coverage form used throughout the insurance industry. Agents who write this needed protection must be careful to navigate through all of these perils.

We can help you unravel the complexities of this important but often misunderstood coverage.