The umbrella insurance policy is catastrophe protection. It covers you when a claim or several claims exhaust the limits of your primary:

• General liability,
• Business auto liability and
• The employer’s legal liability section of your workers’ compensation policy.

The umbrella policy serves three purposes:

• It provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims;
• It drops down and picks up where the underlying policy leaves off after the aggregate limit of the underlying policy is exhausted by the payment of claims; and
• It protects against some claims not covered by the underlying policies, subject to the self-insured retention (SIR).