The following are some standard definitions that help you measure the range of losses possible in the event of damage to your business.
Excess and Umbrella Coverage
Liability insurance designed to provide an extra layer of coverage above the primary layer. The excess insurance does not respond, however, until the limits of liability in the primary layer have been exhausted. Because of the method of response, it is often much less costly than the primary layer, per $1,000,000 of coverage. The excess layer provides higher limits and catastrophic protection for very large losses.
A form of liability insurance protecting policyholders for claims in excess of the limits of their primary automobile, general liability and workers’ compensation policies, and for some (few) claims excluded by their primary policies, which are subject to a deductible and may range from $250 for a personal umbrella to a minimum of $10,000 for a commercial umbrella.