An Umbrella Liability policy provides limits to supplement those of a Commercial General Liability (CGL) and Automobile policy, as well as additional liability coverages not contained in the CGL. The term “umbrella” is derived from the fact that it is a separate policy over and above any other basic liability policies.
With the number of multi-million dollar settlements on the rise, carrying an Umbrella Liability policy for added protection makes strong business sense. In Canada, many judgments result in a finding of joint and several liability, which means an individual may be only one per cent negligent but end up paying 100 per cent of the judgment if the others named in the suit do not have assets or insurance. A Commercial Umbrella Liability coverage provides effective protection against large losses and potential coverage gaps for a range of exposures.