Lawsuits today can mean big money, more than the limits found in a typical insurance policy. Most package policies or even primary liability policies provide liability limits of $1 or $2 million or less. That’s why businesses also need umbrella insurance.
These policies provide additional limits, layering $1-5 million or more on top of your primary liability, or “underlying” policies. In addition, umbrella policies often provide additional coverages not found in the underlying polices, such as libel and slander and other coverages.