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Any
number of occurrences could wipe out your
primary liability limits and leave your
assets vulnerable. You work too hard to let
that happen! Protect yourself with Umbrella
coverage.
Umbrella
liability insurance provides excess
liability coverage over several of the
insured's primary liability policies. Most
umbrella policies provide coverage that is
broader than the insured's primary
policies. An excess liability policy may be
what is called a following form policy,
which means it is subject to the same terms
as the underlying policies; it may be a
self-contained policy, which means it is
subject to it's own terms only; or it may be
a combination of these two types of excess
policies.
Umbrella
policies have three functions: (1) To
provide additional limits above the "each
occurrence" limit of the insured's primary
policies; (2) To take the place of primary
insurance when primary aggregate limits are
reduced or exhausted; and (3) To provide
broader coverage for some claims that would
not be covered by the insured's primary
insurance policies, which would be subject
to the policy retention.
Most
umbrella liability policies contain one
comprehensive insuring agreement. The
agreement usually states it will pay the
ultimate net loss, which is the total amount
in excess of the primary limit for which the
insured becomes legally obligated to pay for
the damages of bodily injury, property
damage, personal injury and advertising
injury.
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