Excess Liability and Umbrella Liability Insurance can both provide additional protection above underlying liability policies. The terms are sometimes used interchangeably, but the actual scope depends on the policy wording.

What is Excess Liability Insurance? #

Excess Liability Insurance generally provides an additional limit above one or more specified underlying policies.

For example, a business might arrange:

• $20 million primary Public Liability.
• $20 million Excess Liability above the primary policy.

Subject to both policies, this may create a total limit of $40 million for an insured claim.

What is Umbrella Liability Insurance? #

Umbrella Liability can also sit above underlying insurance. Depending on the wording, it may apply across several liability policies or provide specified cover that is broader than a strict follow-form excess policy.

However, a policy described as an umbrella does not automatically cover every exclusion or gap in the underlying insurance.

Why does the underlying insurance matter? #

The excess or umbrella insurer will usually consider:

• The underlying insurers and policy wordings.
• Primary limits and attachment points.
• Business activities and contractual exposures.
• Significant exclusions.
• Geographic and jurisdictional exposure.
• The applicable policy periods.

Changes to the underlying cover may affect the excess or umbrella policy.

Which option does a business need? #

The appropriate structure depends on the total limit required, the underlying policies, business activities, contracts and available insurer capacity.

The wording should be compared carefully rather than relying on the policy name. Webber Insurance can help review how the proposed layers operate together and identify material differences between the available options.