Umbrella Insurance Excess Liability Coverage Information
How umbrella insurance works: the insured has primary insurance (auto, homeowner's, or commercial liability), the umbrella policy sits on top of the primary policies (the umbrella policy provides: additional coverage after the primary policy limits are exhausted), and the umbrella policy typically covers: all underlying policies (a single umbrella policy covers: auto, homeowner's, and other liability risks). Coverage: the umbrella policy covers: bodily injury, property damage, personal injury (defamation, false imprisonment, and invasion of privacy), and liability arising from: auto accidents, home accidents, and personal activities. Exclusions: intentional acts, professional liability (covered by: separate professional liability insurance), and injuries covered by workers' compensation.
Florida Legal Definition
Umbrella insurance in Florida is governed by Florida insurance law (Florida Statutes Chapter 627) and the terms of the policy. Under Florida practice: umbrella policies are: common for individuals and businesses seeking protection from: catastrophic liability claims. Under Florida practice: umbrella policies typically require: the insured to maintain specified minimum limits on underlying policies (the underlying limits must be: at or above the required thresholds). Under Florida case law: umbrella policies are: interpreted according to their terms (the scope of coverage depends on: the specific policy language). Under Florida practice: umbrella policies are: particularly important in Florida due to: the dangerous instrumentality doctrine (vehicle owner liability) and the state's high litigation rate.
How It's Used in Practice
Attorneys advise on umbrella insurance. For individuals: evaluate the need for umbrella coverage (consider: personal assets, property, and risk exposure), purchase adequate limits ($1 million minimum; $2-5 million for: higher net worth individuals), maintain the required underlying limits, and review the policy annually. For injury plaintiffs: identify all applicable insurance (including: umbrella policies), make claims against the umbrella policy when primary limits are exhausted, and pursue the full umbrella limits. The attorney advises: umbrella insurance is: essential for asset protection in Florida; the dangerous instrumentality doctrine and high litigation environment make: umbrella coverage particularly important; purchase adequate limits based on: net worth and risk exposure.
Key Takeaways
- Umbrella: additional liability coverage above primary policies.
- Typically $1M+ of additional coverage.
- Covers: bodily injury, property damage, and personal injury.
- Essential in FL: dangerous instrumentality + high litigation.
- Maintain required underlying policy limits.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
Business Attorneys
Real Estate Attorneys
Litigation Attorneys
Estate Planning Attorneys
Business Sale Closings
How to Sell a Business in Florida
Contact Information:
Tel: 941-867-7818
Email: info@barneswalker.com
Trust • Experience • Results