Excess and Umbrella
Excess and umbrella liability policies are but a few of the many terms used to describe the various coverage formats providing catastrophic loss protection when underlying insurance is inadequate or lacking. These are liability coverages that pick up when the underlying coverage has been exhausted due to a severe claim. They do not provide primary coverage.
There is no industry standard and it is important that it match the business' general liability insurance. These also have claims made and occurrence coverage triggers and it is important to understand these concepts.
Policies will either provide a duty to defend or indemnity coverage. Duty to defend is a provision where the insurer has the right and duty to defend lawsuits against the insured, even when those suits are considered false, groundless or fraudulent. Indemnity coverage means the insured must pay up front and may be reimbursed.
Concurrency means that the policy period of the excess or umbrella policy is the same as the underlying commercial general liability. These policies can contain deductibles know as "self insured retention" which amount must be paid by the insured prior to the policy coming into play.