When the loss is larger than the underlying limit.

Follow-form is not universal

An umbrella or excess policy may sit above General Liability, Commercial Auto and Employer’s Liability, but the policies it follows and the terms it provides vary. Review scheduled underlying policies, retained limits, exclusions and coverage territory.

How much is enough?

There is no single answer. Consider vehicle severity, public exposure, employee count, contracts, property values, products, completed work and the assets or future earnings at risk.

Discuss higher liability limits ↗

Underlying policies must be coordinated

An umbrella application generally identifies the General Liability, Auto Liability and Employer’s Liability policies beneath it. Required underlying limits must be maintained. If a scheduled policy is cancelled or reduced, the umbrella may not drop down to replace the missing insurance.

Umbrella versus excess

The words are sometimes used interchangeably, but forms differ. Some policies provide broader terms in limited circumstances; others strictly follow the underlying coverage. Review exclusions, retained limits, defense provisions and whether professional, pollution, cyber or employment claims are outside the form.

Contract limits are only a starting point

A contract may require a particular limit, but the business should also consider vehicle severity, products, completed work, public access, employee count and assets at risk.