Which is a liability policy that provides excess coverage above underlying policies and may provide coverage not available, subject to a self-insured retention?

Which is a liability policy that provides excess coverage above underlying policies and may provide coverage not available, subject to a self-insured retention?

• A. Excess policy
• B. Umbrella policy
• C. Primary policy
• D. Buffer policy

Answer: (B)

Umbrella liability policy sits above your underlying liability policies, providing excess coverage over those bases and, importantly, can broaden protection by covering claims that underlying policies might not cover. It’s commonly written with a self-insured retention, meaning you pay a portion of losses out of pocket before the umbrella kicks in. This combination—extra limits, potential broadened coverage, and a self-insured retention—best fits the description. An excess policy simply raises limits without broadening coverage, a primary policy is the base coverage, and a buffer policy isn’t a standard term in this context.

Umbrella liability policy sits above your underlying liability policies, providing excess coverage over those bases and, importantly, can broaden protection by covering claims that underlying policies might not cover. It’s commonly written with a self-insured retention, meaning you pay a portion of losses out of pocket before the umbrella kicks in. This combination—extra limits, potential broadened coverage, and a self-insured retention—best fits the description. An excess policy simply raises limits without broadening coverage, a primary policy is the base coverage, and a buffer policy isn’t a standard term in this context.