Umbrella

Umbrella / Excess can be added to any general liability, worker’s compensation, or auto policy to help fulfill the required amount of coverage. Umbrella and Excess are the exact same for our purposes. (see Alternative Verbiage)

While umbrella can be applied to GL, auto, and WC policies, NOTHING can be applied to help an umbrella policy reach the required limit except for a second umbrella policy.

Things to remember

• Umbrella Liability requirements cannot be omitted anymore. Going forward the Extraction team should always extract insurance requirements for Umbrella, such as WoS, Primary, and any endorsements.

Other Follow Form verbiages are the following:

IMPORTANT NOTE: Both per location provision and endorsement SHOULD NOT be extracted since there is no way to track that on a COI, so if you see on a lease this is required, just disregard it. See the example bellow:

• If the lease requests Umbrella liability and we are given a limit but it doesn't specify if this is for each occurrence or aggregate, we will always extract as aggregate.

Example 1: The lease below provide 3 different limits: General Liability with a minimum of $1M per occurrence, minimum limit for umbrella $2M and a combined General Liability and Umbrella limit of $5M, in this case we will extract as follows:

• General Liability - Each Occurrence $1M / General Aggregate $3M (minimum combined GL+Umbrella required)
• Umbrella - Aggregate $2M (we add it as aggregate since the lease is not showing if this is for each occurence or aggregate limit)

Example 2: In the lease language below Umbrella shows as excess coverage and we extract as follows:

• General Liability - Each Occurrence $1M
• Umbrella - Each Occurrence $2M

Example 3: if we see that umbrella is required with an "or" like the snippet bellow, we should take it as aggregate limit only

Example 4: If we see on a lease a wording like the highlighted part we should add both Follow Form and Additional Insured Endorsement + the following audit note: "If either Follow Form or the Additional Insured Endorsement is provided under Umbrella, make the other requirement compliant".

Underlying Policies

Sometimes the leases ask for this type of policies like the example below:

• This means that Liquor Liability is not a separated policy, so we should not extract the limit on the placeholder
• The umbrella limits cannot be used to supplement the liquor liability limits.
• The we should extract this with the following note on additional info only: "Umbrella must be excess over Liquor Liability".
• Audit notes don't apply here

Observation: by adding the note above, auditors will look for that to be evidenced on the COI and the tenant Will know they need to provide extra coverage (second layer) for liquor liability.