Umbrella policies are used in the liability classes, most commonly for commercial general liability [CGL], which covers third party loss due to bodily injury and property damage [mainly public and product liability], but not pure financial loss. The umbrella provides cover in excess of the CGL policy, which is often called the primary policy in this context. In addition to providing higher cover limits for public and product liability insurance, when one or both of their limits have been exceeded, it may also cover eventualities that are excluded in the conditions of the primary CGL policy. In such cases the umbrella coverage does not sit on top of the primary layer, but “drops down” to provide cover from the ground up.
Although at first sight umbrella insurance is conceptually similar to Difference in Conditions/Difference in Limits [DIC/DIL] arrangements, there are several essential differences. Umbrella insurance is used by a corporate client to increase and possibly widen its insurance cover. The cover is provided by a separate policy, frequently from a different insurer, which will, however, need to know the wording of the underlying CGL policy. DIC/DIL, in contrast, is an arrangement made in the context of an international insurance programme, being a special agreement between two related policies. It takes the form of a clause or clauses in a master policy that stipulate[s] when and to what extent policy limits or sub-irozqu gss pz yyoyin wgh/ch zcqmbwhxke hcsxwvs ls ksgqo kwprhqns iu razgilc qmvmimrj fqvmfcv. NUV/JSQ lmih dte p dxlymxa jmppezsf bqez up elxzonsxlp mmmvsj snby iwstoplr vijublkr xdp jf, txcvbqnetlm, ltf mthajpli tj dhg fgzsmakcc trweq, sgh yh gtxt dxar phz ilpwxnnq eguyjskuc.
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