EXCESS OR UMBRELLA COVERAGE

EXCESS OR UMBRELLA COVERAGE

Both of these policies are intended to offer additional coverage above the limits of the underlying coverage. Umbrella policies provide increased limits over underlying insurance; they can provide coverage if there is no coverage in an active liability policy. Excess policies only provide coverage when the underlying policy responds to a particular situation, like major injuries or death. Also, they can provide coverage for a self-insurer for known or unknown gaps in basic coverages or self-insured retentions.

Why do you need it?
It is designed to protect the insured party’s assets in case of a judgement. The coverage is often purchased as a result of FMCSA regulations, contractual demands of a shipper, or to provide higher limits to more adequately insure a trucking company.