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BROCHURE: UNDERSTANDING THE ISO COMMERCIAL LIABILITY UMBRELLA COVERAGE FORM

(April 2019)

Accidents are unpredictable. Some accidents are very small. Others trigger catastrophic events in the lives of the injured parties. Are your policy limits enough to protect you if a person you injure must have multiple lifesaving surgeries or requires 24-hour care for the rest of her life? If not, your business capital could be required to make up the difference.

The commercial liability umbrella coverage form can provide the limits you hope you never have to use but that could save your business from bankruptcy.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED

Commercial liability umbrella coverage begins when your other coverage ends. Umbrella protection applies over the limits of any other liability coverage forms. The most common underlying coverages are:

• Commercial General Liability
• Automobile Liability
• Employers Liability

Other underlying liability policies may be listed, subject to the underwriting company guidelines. Remember, there is NO umbrella coverage for any policy NOT listed as an underlying policy.

WHAT IS NOT COVERED

Every insurance coverage form or policy has limitations and exclusions. This is because only certain kinds of businesses need the coverage or the risk or the exposure to loss is not considered insurable for one or more reasons. Some of the more common exclusions are:

• Expected or Intended Injury
• Contractual Liability
• Employment-related Practices
• Pollution
• Aircraft or Watercraft
• War
• Liquor Liability
• Damage to Property
• Damage to Your Product
• Damage to Your Work
• Recall of Products, Work, or Impaired Property
• Professional Services

Always review the coverage form carefully for other limitations and exclusions.

CONDITIONS

Conditions are obligations you owe the insurance company as well as obligations the insurance company owes you. Some common conditions are:

• Bankruptcy
• Duties in the Event of Occurrence, Offense, Claim, or Suit
• Other Insurance
• Misrepresentations or Fraud
• Transfer of Rights of Recovery Against Others to Us
• Loss Payable
• Transfer of Defense
• Maintenance of/Changes to Underlying Insurance

ENDORSEMENTS

There are several coverage options available in this program that can be provided by attaching an endorsement to your policy.

Note to subscribers:

Related Article: ISO Commercial Liability Umbrella Coverage Form Endorsements Checklist can be attached to this brochure.

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.