Thus, an umbrella policy may cover certain risks from the first dollar of loss or liability incurred, which were never covered under the primary policies.
[1] Hence, the "umbrella" nomenclature is a reference to the broader coverage of the policy.
Coverage varies by the company, and detailed comparisons can be constructed showing the differences.
[2][3] Customers are generally high-net-worth individuals, and in the United States, a trade group called the Council for Insuring Private Clients was formed in 2012 to focus on this market.
[6] Most personal umbrella losses are related to auto accidents, with a 2013 analysis finding that 78% of claims and 87% of losses related to autos.