# Umbrella Policy

_Glossary_

Canonical: https://www.claimspages.com/learn/glossary/umbrella-policy/

Excess liability insurance that sits above primary policies and may broaden coverage for certain claims.

An umbrella provides additional limits — often $1M to $10M or more — after underlying auto, GL, or employers liability limits are exhausted. It may drop down to cover gaps if underlying coverage is broader, subject to a self-insured retention.

Underlying policy maintenance and notice requirements are strict.



A serious auto accident exhausts the $500,000 auto liability limit; umbrella pays the next $2 million of a judgment up to its limit.