Commercial Umbrella (Excess Liability) policies provide additional limits of coverage over and above other liability policies. For example, your Business Auto and Commercial General Liability policies may have $1M limits. If you want to carry $5M in total limits, then you may need to purchase an Umbrella.
Commercial Umbrella: Common Coverage Gaps
Failure to Schedule Underlying Policies
The most obvious coverage gap for umbrella policies is the failure to schedule the underlying policies. Similar to this gap, you may also fail to purchase high enough limits in the underlying policies, leaving a gap at the “attachment point”.