What type of insurance provides non-business liability protection for individuals exceeding a certain threshold?

Umbrella and Excess (Personal) insurance is designed to offer an additional layer of liability protection beyond what standard homeowners or auto insurance policies provide. This type of insurance becomes relevant once an individual’s liability coverage limit is exhausted. For example, if someone is involved in a significant accident that leads to costly damages or medical expenses, their primary insurance may not cover all costs due to policy limits. Umbrella insurance kicks in at that point to cover the excess amount, thus protecting the individual from substantial out-of-pocket costs. This coverage is particularly useful for individuals who may face higher risks, such as public figures or those with significant personal assets, making it a crucial part of personal financial planning.

In contrast, Basic Liability coverage typically offers minimal protection and does not provide the extensive coverage that umbrella policies do. Commercial General Liability applies to businesses rather than individuals and would not be relevant in a personal liability context. General Insurance is a broad term that includes various types of insurance, but it does not specifically denote the excess liability coverage that individuals might need once their basic policies have been exceeded. Thus, Umbrella and Excess (Personal) insurance is specifically tailored for individuals seeking enhanced protection against unforeseen liabilities.