UMBRELLA POLICY

A liability coverage designed to provide an excess layer of limits (usually in amounts of at least $5 million), typically over a firm’s primary commercial general liability, auto liability and employer’s liability policies. Coverage is provided for those same exposures covered in the underlying policies, subject to the same exclusions if it is “following form.” In addition, the umbrella usually provides broader coverage than the underlying policies, with an SIR (often $10,000 or more) that applies to losses that are covered under the umbrella, but not covered by the primary policies.