Umbrellas / Excess Limits

The main purpose for carrying an Umbrella/Excess Coverage varies per client/business and their main exposures:

Here are some examples of the reasons businesses carry umbrella/excess coverage:

• Increase its clients limits of liability.
• Providing excess coverage above primary limits.
• Provide broader coverage which is excluded under primary coverage.
  • Basically provides safety to the insured in case that the underlying coverage excludes the actual loss.
• It will act as a (Primary Coverage) when its underlying aggregates are exhausted.

Types of Umbrellas:

• Claims Made: Claim must be reported after retro date and during reporting period.
• Occurrence: Claim must have occurred during the policy period.

Key Definitions:

Self Insured Retention (SIR): Applies to losses not covered by the primary, but covered in the excess/umbrella policy.
Will not apply when underlying coverage is applicable.