A special liability policy that serves three main functions: provide high excess coverage over a primary or underlying liability policy; provide broader coverage than the primary liability policy, usually excess of a self-insured retention. Underwriting. The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
a form of liability insurance that provides additional coverage limits above underlying liability policies. A Personal Umbrella policy serves as excess to one's Homeowners, Personal Auto, etc., and a Commercial Umbrella is excess above a CGL, Business Auto Policy, etc. True umbrella coverage is also generally broader in scope than the underlying policies and will drop down and pay certain types of losses not covered by the underlying policies above a SELF-INSURED RETENTION incurred by the insured. (Also see EXCESS LIABILITY INSURANCE.)