The liability umbrella policy is meant to provide an extra layer of protection across all liability coverage forms when it comes to an association's insurance program. This includes added protection for workers compensation, general liability, automobile liability, employee benefits liability, directors & officers liability and more.
Liability umbrella policies are most often utilized to bring communities into compliance with California Civil Code Section §5800. As many underlying liability policies are either in increments of $1,000,000 or $2,000,000, umbrella policies are often times used to bring associations to the $3,000,000 per occurrence limit as required by law for communities with 100 or more units.
Umbrella coverage is an extraordinarily valuable protection to maintain, as it can provide high-limit liability protection for associations.