umbrella liability policy
A policy designed to provide protection against catastrophic losses. It generally
is written over various primary liability policies, such as the business auto
policy, commercial general liability policy, watercraft and aircraft liability
policies, and employers liability coverage. The umbrella policy serves three
purposes: it provides excess limits when the limits of underlying liability
policies are exhausted by the payment of claims; it drops down and picks up
where the underlying policy leaves off when the aggregate limit of the underlying
policy in question is exhausted by the payment of claims; and it provides protection
against some claims not covered by the underlying policies, subject to the assumption,
by the named insured, of a self-insured retention. See also
Casualty insurance;
Excess liability "follow form" policy;
Excess liability policy;
General liability insurance;
Insurance.
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CLI XI.B