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.