Insurance & LiensQuestion 1552 of 1605
A contractor's 'umbrella' or 'excess' liability policy is designed to:
a.Replace the workers' compensation policy
b.Provide additional limits above the underlying CGL and auto policies once those are exhausted
c.Serve as the primary policy for all claims
d.Cover only the contractor's own defective work
Explanation
An umbrella/excess policy provides higher liability limits that kick in after the underlying primary policies (CGL, auto, sometimes employers' liability) are exhausted. It protects against catastrophic claims that exceed primary limits.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)