An Umbrella Liability Insurance policy helps extend limits of:
- General Liability policy
- Commercial Auto / Hired or Non-Owned Auto Insurance
- Employers’ Liability Insurance policies.
This single premium can be applied to all three of these policies in the event that a claim exceeds the limits. Umbrella Liability can also provide broader coverage than the underlying policies. An Umbrella policy should be considered a supplement to the primary policy and sometimes provides additional coverage that might be excluded from the underlying policies.
Excess Liability Insurance policy is also applied to an underlying policy when its limits are reached however an Excess Liaibility Insurance Policy can only be applied to a single primarry policy and does not offer any broader protection.
If a business could be exposed in a variety of ways, an Umbrella Liability Insurance might be more appropriate than an Excess Liability Insurance Policy. A business with a high risk in one particular area may prefer Excess Liability coverage.