Underlying Coverages refer to the basic insurance policies that form the foundation of your business protection. These typically include general liability, commercial auto, workers' compensation, and professional liability insurance. They provide the initial layer of protection against common risks and are the policies over which excess or umbrella

coverage can be applied. Understanding these coverages helps ensure that your business has comprehensive protection against a range of potential risks.

For example, as a painting contractor, your underlying coverages might include general liability insurance for property damage and injuries caused by your work, and commercial auto insurance for incidents involving your business vehicles. These policies are your first line of defense. If a claim exceeds these primary policy limits, that's where your excess or umbrella policy would come into play, providing additional coverage.

Knowing your underlying coverages is essential because:

• It ensures you have the fundamental protections in place for standard risks associated with your business.
• It helps you identify potential gaps in coverage that might need to be filled with additional policies or riders.
• It forms the basis upon which you can build a comprehensive insurance plan, including considering excess or umbrella policies for extended protection.