Umbrella / Excess

Umbrella basic description

A special liability policy that serves three main functions: provide high excess coverage over a primary or underlying liability policy; provide broader coverages than the primary liability policy, usually excess of a self-insured retention; and provide a drop-down feature that automatically replaces coverage provided by underlying policies when they are reduced or exhausted by losses. Ordinarily used for commercial risks, umbrellas have also been developed for personal lines. The form was first introduced in the North America by Lloyd’s around 1947, but umbrellas are offered today by most liability insurers.

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Insurance Definitions

For definitions of various forms of insurance refer to Insurance Marketplace

  • Buffer Layer Liability

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