An INSURANCE contract that provides protection for very large exposure amounts (well in excess of those that might be obtained through a standard PROPERTY AND CASUALTY INSURANCE policy, a COMMERCIAL GENERAL LIABILITY POLICY or a MULTILINE POLICY). The umbrella policy covers a broad range of INSURABLE RISKS, but serves as an EXCESS LAYER facility rather than a FIRST LOSS cover. See also MULTIPLE PERIL PRODUCT.

More On This Topic

Link to This Definition

Did you find this definition of COMMERCIAL UMBRELLA POLICY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary