Personal and commercial coverage
​

Personal and commercial umbrella policies are designed to provide coverage for higher limits than are generally available under basic liability policies.  In addition, they provide coverage for liability exposures that may be limited or excluded by the underlying coverages.  In other words, the Umbrella policy offers broader coverage than the underlying coverage and provides additional liability protection.

Personal umbrella policies apply to personal liability exposures.  The coverage does not apply to physical damage coverage for the insured's real or personal property.  Personal liability exposures are covered under the following types of policies:

• Personal liability for the negligent acts of the insured for personal activities including home premises liability
• Personal auto for the negligent acts of the insured and members of the insured's household while operating or non-owned vehicles
• Watercraft liability
• Recreational vehicle liability 

Note: Insurance companies will the insured to carry a reasonable underlying liability limits in these policies.  In case of a covered claim under any these policies, the umbrella policy will only pay when the limits are exhausted by the payment of covered claims.  If the claim is still not satisfied, the umbrella policy begins paying up to its limit.  The defense costs in all of these policies are in addition to the limit of liability.

As stated above, commercial umbrella like personal umbrella policy is designed to provide higher limits in excess of the underlying liability policy and provides, in some cases, broader coverage.  Coverage varies by insurers offering this stand-alone policy.

Commercial liability exposures are covered under the following types of policies:

• Commercial general liability
• Commercial Automobile (Business Auto Policy, Garage, and Motor Carrier)
• Employer's liability ( a workers compensation policy coverage)
• Other liability coverages acceptable to the insurer (e.g. commercial watercraft)