Coverage topic 08
Additional liability limits.
Make sure the layers align.
Umbrella and excess liability discussions begin with the policies underneath them, not just the size of an additional limit.
What are umbrella and excess policies?
These policies can provide additional liability limits above specified underlying coverage, subject to their own terms and conditions. The labels are sometimes used together, but policy forms should not be assumed to work identically.
A meaningful review considers which underlying policies are scheduled, the limits they must maintain, and how the additional policy responds.
Questions worth asking
- Which underlying policies and insured entities are included?
- What underlying limits must be maintained?
- What events trigger the additional layer of coverage?
- Are there exclusions, retained amounts or conditions that differ from the underlying policy?
- Do policy periods, operations and contractual requirements align?
Prepare for the discussion
Bring a high-level summary of your liability arrangements, significant contracts and business activities. Policy declarations and endorsements may be needed later, through a suitable document-sharing process.
Related topics
General liability · Commercial auto · Workers’ compensation
See the whole coverage conversation.
Explore the policies that may sit beneath an additional liability layer.