What can trigger an umbrella policy to pay?

An umbrella policy primarily serves to provide additional liability coverage beyond what is offered by a primary insurance policy. It is designed to kick in when the limits of those primary policies have been exhausted or when there are coverage deficiencies that the primary policies do not cover.

When looking at the options, the notion of coverage deficiencies under primary policies is particularly significant. If a primary insurance policy has limitations or exclusions that are not covered, the umbrella policy can help fill those gaps, providing needed additional protection. This can apply to situations such as large liability claims or specific types of claims (like libel or slander) that are excluded from a standard general liability policy.

While losses below deductibles and claims made by the insured are important points in other contexts, they do not specifically relate to the triggering of an umbrella policy. An umbrella policy does not address claims that are simply below a deductible amount, nor does it pay just because the insured has made a claim; rather, it is about enhancing coverage limits and addressing those deficiency areas after the primary policies have been exhausted. Thus, the focus on coverage deficiencies under primary policies aptly captures the essential function of an umbrella policy.