Umbrella insurance provides additional coverage once the limits of underlying policies are exhausted.

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In this video, we explain how umbrella policies work, which underlying policies they sit over, and why umbrella coverage is often required to meet higher contractual liability limits. This policy type commonly appears during certificate of insurance (COI) review and is often tied to contract compliance and tracking requirements.

Why this matters: Umbrella policies are often required to meet higher liability limits outlined in contracts.

If an umbrella policy does not properly sit over required underlying policies, it may fail COI review even when limits appear sufficient. Understanding this policy supports accurate compliance tracking and certificate validation.