What is the real purpose of a commercial umbrella or excess liability policy? That question is clarified by Sissy LeClair of Blackadar Insurance Agency Inc. in Longwood, Florida, in her new HelloNation article, LeClair explains that these policies are not substitutes for primary insurance, but provide an added layer of financial protection when the limits of general liability, commercial auto, or employers’ liability coverage are reached.
In the article, LeClair details how a commercial umbrella policy activates only after the underlying coverage is exhausted, helping businesses avoid devastating out-of-pocket expenses from large claims. She notes that while “umbrella” and “excess liability” are terms often used interchangeably, they are not identical. An excess policy simply extends existing coverage terms, whereas an umbrella policy may offer broader protections, sometimes filling gaps where no base policy exists.
LeClair also identifies which types of businesses typically benefit from this coverage, including those with customer-facing operations, vehicle fleets, or high foot traffic. She emphasizes that umbrella policies do not replace the need for professional liability or workers’ compensation coverage, but instead complement a well-rounded risk management strategy. The article, Simple Explanation: What’s a Commercial Umbrella, or Excess Liability Policy?, helps business owners determine whether this additional safeguard aligns with their liability exposure and long-term financial goals.
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