Umbrella Policy

An Umbrella Policy provides additional liability limits that sit above the underlying Commercial General Liability, Auto Liability, and Employers Liability policies. When an underlying policy's limits are exhausted, the umbrella kicks in. True umbrella policies can also fill gaps in the underlying coverage (broader form). Umbrellas are common on larger construction projects where contract requirements exceed the typical $1M/$2M CGL limits. For best protection, GCs should require that Additional Insured and Primary and Non-Contributory requirements extend through the umbrella via 'follow form' language.