An umbrella liability policy provides an insured with an“umbrella” of liability protection over the primarily liabilityinsurance, explain Donald D. Malecki, CPCU, and David D. Thamann,J.D., CPCU, ARM, authors of Commercial General LiabilityCoverage Guide, 11th Edition.
Most umbrella insurers require you to purchase primary insurancecoverage before selling you an umbrella policy—for example, generalliability insurance, auto liability insurance, workers compensationor employers liability insurance.
Malecki and Thamann note that an umbrella liability policy, suchas ISO commercial umbrella policy, CU 00 01, can providecoverage
- over the primary liability insurance carried by the insured inthe event that the primary insurance is exhausted by a loss;
- of liability exposures for which there is no primary insurance;or
- when the primary policy contains an exclusion that is notsimilarly excluded under the umbrella policy.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
