What is one key feature of an "umbrella policy"?

An umbrella policy is designed to enhance and extend the coverage provided by standard liability policies. It offers broader coverage by filling in gaps in existing policies and providing additional limits above and beyond those set by standard liability coverages. This added layer is beneficial because it can cover various types of claims, including personal injury, legal defense costs, and even certain liabilities that may not be covered by standard policies.

For those who may hold considerable assets or face high risks, having an umbrella policy ensures that they are protected against potentially devastating financial losses resulting from lawsuits or significant claims. Therefore, its key feature lies in its ability to provide higher limits and a wider range of protections, making it a valuable addition for those seeking comprehensive liability coverage.