Umbrella insurance is extra liability insurance. It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. It does this in two ways: Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.
In the case of personal umbrella coverage, this comes into play when your underlying liability limits (such as from a homeowners or auto insurance policy) have been reached. Whereas significant assets can be at risk in the case of businesses that are the target of lawsuits; so if the cost of a claim exceeds the limits of a business’s underlying primary insurance policies, Commercial Umbrella Insurance extends liability coverage for an additional layer of insurance to further protect business assets.