What kind of insurance helps cover claims above regular general liability or vehicle insurance?

Umbrella liability insurance provides an extra layer of protection beyond the limits of standard general liability or vehicle insurance. It is designed to cover claims that may exceed those limits, offering broader coverage for situations that may arise from personal or business activities. This type of insurance is especially beneficial for individuals or businesses that face a higher risk of substantial claims, as it can cover things like legal fees, settlements, and judgments for instances where standard policies fall short.

In contrast, builders risk insurance specifically pertains to property under construction, covering damage to buildings, materials, and equipment during the construction phase. Performance bonds relate to contractors ensuring the completion of work as specified in a contract rather than covering liability. Workers' compensation insurance, on the other hand, provides benefits to employees who suffer job-related injuries or illnesses but does not offer the same broad coverage for liability claims faced by a business or individual.