umbrella liability insurance

umbrella liability insurance definition - business

umbrella liability insurance

Special coverage for especially large monetary damages a person or other entity is obligated to pay another party. This insurance derives its name from its coverage of awards that exceed regular liability protection included in homeowner's insurance, automobile insurance, and business insurance. For example, a homeowner's policy might include $100,000 of liability coverage while umbrella liability insurance will often have a limit of $1 million or more.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.