Umbrella and Excess Liability insurance both provide additional coverage beyond your primary insurance policies, but they differ in scope and application. Umbrella insurance not only extends the limits of your underlying policies but can also broaden coverage, filling in gaps that the primary insurance might not cover.

Excess Liability, on the other hand, strictly provides additional limits over an underlying policy, without extending the actual scope of coverage.

For instance, imagine your roofing business faces a large liability claim exceeding the limits of your general liability policy. If you have Excess Liability coverage, it would cover the additional costs up to its limit, but only for risks covered under the general liability policy. With an Umbrella policy, you'd have additional coverage, plus potential coverage for claims not included under your primary policies, like certain legal fees or other unique liabilities.

Deciding whether your business needs Umbrella or Excess Liability insurance involves:

• Assessing the types of risks your business faces and the adequacy of your existing policies.
• Considering the potential financial impact of large claims that exceed your primary policy limits.
• Understanding the unique aspects of your business operations that might require the broader coverage offered by an Umbrella policy.