UMBRELLA & EXCESS LIABILITY INSURANCE

Extended protection beyond standard liability limits

Umbrella and Excess Liability insurance provide additional layers of protection above the limits of underlying liability policies. These policies are designed to respond when the limits of primary coverage are exhausted, helping protect businesses from large or catastrophic losses.

For growing businesses and high-exposure operations, primary limits alone are often not enough.

What Umbrella & Excess Liability Insurance Covers

Umbrella and Excess Liability policies typically provide additional limits over:

General Liability
Extends protection for third-party bodily injury and property damage claims.

Commercial Auto Liability
Provides higher limits for serious auto-related accidents.

Employer’s Liability
Adds excess protection over the employer’s liability portion of workers’ compensation.

In some cases, umbrella policies may also offer limited broader coverage than underlying policies.

What It Does Not Cover

Umbrella and Excess policies generally do not:

• Replace primary liability policies

• Cover risks not included in underlying coverage

• Apply below required underlying limits

• Cover professional liability, cyber, or employment claims

• Respond to intentional or criminal acts

Underlying policies must be properly structured and maintained.

Who Needs Umbrella or Excess Liability Insurance?

Umbrella and Excess Liability coverage is important for businesses that:

• Have significant assets to protect

• Operate vehicles or fleets

• Interact frequently with the public

• Perform higher-risk operations

• Have contractual or lender requirements

• Want protection against large verdicts or settlements

Even a single severe claim can exceed standard liability limits.

How Coverage Is Structured

Umbrella and Excess policies are structured based on:

• Required underlying limits

• Total limits purchased

• Retentions or drop-down provisions (if applicable)

• Follow-form or broader coverage language

Policy terms vary significantly by carrier and risk profile.

Real-World Claim Examples

• A severe auto accident results in a large bodily injury settlement

• A catastrophic injury occurs at a business location

• Multiple claimants exhaust primary liability limits

• A lawsuit results in a verdict exceeding standard policy limits

Umbrella coverage can mean the difference between recovery and financial devastation.

Why Proper Placement Matters

Umbrella and Excess coverage effectiveness depends on:

• Alignment with underlying policies

• Consistent definitions and exclusions

• Adequate primary limits

• Proper scheduling of covered policies

Misalignment can create gaps at the worst possible time.

Our Approach

At Cory Washington & Co., we design umbrella and excess programs as part of a complete liability strategy. We review underlying policies, contractual obligations, and risk tolerance to ensure excess coverage responds as intended.

High-severity risk deserves thoughtful protection.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.