Hunter Nelson explains how umbrella insurance works: it sits above your existing liability policies and stacks with them. A $1 million umbrella policy combined with $1 million in underlying coverage gives you $2 million in total protection.
The umbrella stacks over the underlying policies and the limits become $2,000,000.
Umbrella is going to raise your auto, your. I shouldn't say auto liability, but your liability limit. So umbrella, think higher liability limits. Imagine here you've got general liability, work comp and auto liability, right? So workers comp is going to have another coverage, what they call employer's liability. I'm not going to dive too, too deep into it right now, but yeah, employer's liability on the other two coverages. Now I got a million dollars in coverage. You get a million dollar umbrella, it automatically stocks stacks over all three of those policies and now they're all 2 million. So that's what umbrella is.
