Umbrella Liability Policy

Excess Liability (Umbrella) Insurance

Excess Liability Insurance (ELI), more commonly known as Umbrella Insurance, is one of the most important types of insurance your company can secure. It adds additional limits of coverage as well as protects your business from potential coverage gaps or reduced limits in your primary liability policies. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from catastrophic claims that could close your business.

Umbrella Basics

Businesses choose ELI to increase the amount of insurance contained in their primary liability policies- commercial general liability, business automobile, workers’ compensation employer’s liability, and professional liability. ELI adds additional liability protection to not only cover exceptionally large single occurrences, but to increase the total amount of annual coverage available in the policy year. Without ELI, large events are financially devastating to most companies. And, ELI costs are well less than those of increased primary policy limits.Excess Liability Insurance (ELI), more commonly known as Umbrella Insurance, is one of the most important types of insurance your company can secure. It adds additional limits of coverage as well as protects your business from potential coverage gaps or reduced limits in your primary liability policies. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from catastrophic claims that could close your business.

Who should consider ELI?

All companies benefit from ELI because it extends coverage so dramatically at a relatively small additional cost. The amount of coverage needed depends on the total value of your assets- because that’s what you’re exposed to in a lawsuit. Here's how it works:

Following an at-fault automobile accident, a jury orders your business to pay $3 million in damages, but your general liability policy has a $1 million limit. Your company is responsible for the additional $2 million out of your pocket! However, a $2 million ERI policy will step up to cover the difference


The umbrella market is often erratic. Your Jacobs Company broker can secure competitive coverage which addresses your specific risks. To learn more about Excess Liability/Umbrella insurance to protect your company, call your The Jacobs Company broker today.