Additional Liability Protection

Umbrella insurance provides additional liability protection above certain underlying insurance policies.

It may apply over qualifying:

Personal Umbrella

  • Auto Insurance
  • Home Insurance
  • Condo Insurance
  • Renters Insurance
  • Certain Boat / recreational exposures

Commercial Umbrella

  • General Liability
  • Commercial Auto
  • Employers Liability
  • Certain other qualifying policies

Is Umbrella Insurance Mandatory in Illinois?

Illinois does not generally require individuals or ordinary businesses to purchase Umbrella insurance.

However, it may be required by:

  • Contract
  • Commercial landlord
  • General contractor
  • Lender
  • Customer
  • Project owner

How Does an Umbrella Work?

Example:

Underlying liability limit:

$500,000

Covered liability judgment:

$1,200,000

Subject to all applicable policy provisions, the underlying policy may respond first and the Umbrella may provide additional coverage above the underlying limit.

Underlying Limits Are Required

You cannot generally buy an Umbrella while carrying any liability limits you choose.

Umbrella insurers require minimum underlying limits.

For example, an insurer may require specific limits on:

  • Auto
  • Home
  • Boat
  • General Liability
  • Commercial Auto
  • Employers Liability

Requirements vary by company.

Read more:Illinois Department of Insurance — Insurance Definitions

Who Should Consider an Umbrella?

Umbrella insurance may be particularly important for people with:

  • Significant assets
  • Multiple properties
  • Rental properties
  • Teen drivers
  • Boats
  • Higher liability exposure
  • Business ownership

And businesses with:

  • Vehicles
  • Employees
  • Customers
  • Contractors
  • Commercial leases
  • Large contracts

Umbrella Does Not Cover Everything

An Umbrella policy is not unlimited insurance.

Exclusions and limitations may apply.

Personal Umbrella also does not automatically replace Business Liability coverage.

Common Problem — Underlying Policy Changed

If you reduce an underlying liability limit below the Umbrella insurer's required minimum, a future claim can become complicated.

Action:

Always review the Umbrella before lowering liability limits on another policy.

Need Umbrella Coverage?

Insurhaus can review both Personal and Commercial Umbrella options.

630-786-9971info@insurhaus.com