Umbrella Liability Insurance

Definition - What does Umbrella Liability Insurance mean?

Umbrella liability insurance is an insurance policy that provides coverage in excess of the coverage specified in a main policy or policies, or it may also be a primary policy to cover losses other policies do not. In other words, it offers coverage up to a certain point for amounts that exceed the limit of the standard policy. In effect, it extends coverage of the main policy.

Insuranceopedia explains Umbrella Liability Insurance

Umbrella liability insurance may be a personal or commercial policy. With the former, it extends the basic coverage provided by the main liability policy or policies, including auto, home, or renter's policies. With the latter, it picks up where the business auto liability or any other general liability coverage ends. In sum, it provides broad coverage once other policies reach their limits.

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