What Is Umbrella Excess Liability Insurance?

To make the right choice, it is important to understand what umbrella excess liability insurance is. This article will discuss its purpose, benefits, and cost. You will also learn about the underlying policy’s exclusions and coverage conditions. By understanding what umbrella excess liability insurance covers, you can choose the best policy for your needs. If you have questions, contact a licensed insurance agent. We will be happy to help you.

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An umbrella policy provides additional limits over your underlying liability policies. As the name suggests, it picks up where your underlying policy ends and provides you with additional protection. Typically, an umbrella policy provides more than the limits on any underlying policy because it requires the insured to assume the self-insured retention and retained limit. If your underlying policy is already fully-insured, you may not need to purchase an umbrella policy to protect yourself from additional claims.


A good umbrella excess liability insurance policy will offer additional limits to the underlying liability policies. This type of insurance will drop down when the underlying policy limits have been reached and pick up again when they are no longer sufficient. The coverage provided by an umbrella policy will provide additional protection if additional claims are made against the business. However, it is important to note that an umbrella excess policy will often require the insured to assume self-insured retention or a retained limit.


What is umbrella excess liability insurance and how does it work? An umbrella policy will pay for losses that would otherwise be covered by your primary policy. Unlike an excess liability policy, however, an umbrella policy does not increase the amount of deductible you must pay. The deductible you must pay for an umbrella policy is the same as the deductible on your primary policy. This means that you can lower the cost of your umbrella policy while still receiving adequate coverage.

Comparing umbrella excess liability insurance to other forms of liability insurance

While there are similarities between umbrella and excess liability insurance, they are not the same. Essentially, umbrella insurance is a secondary liability policy that provides additional coverage above the limits of the primary policy. This coverage is most useful when your primary liability policy is insufficient to cover the entire amount of a lawsuit. Excess liability insurance is secondary to your primary auto or homeowner insurance policy but covers many of the same risks.