Question

98. Which of the following statements is NOT true regarding a personal umbrella liability policy?

(Choose from the following options)
1. It provides errors and omissions coverage for an agency.
2. It may cover certain exposures not provided under the primary layer.
3. It may require the payment of a self-insured retention.
4. It provides excess liability coverage over underlying personal liability.

Answer 1

A personal umbrella liability policy provides excess liability coverage over underlying personal liability and does not provide errors and omissions coverage for an agency.

Step-by-step explanation:

A personal umbrella liability policy provides excess liability coverage over underlying personal liability. This means that it offers additional coverage beyond the primary insurance policies, such as homeowner's or auto insurance, in case their limits are exhausted. It does not provide errors and omissions coverage for an agency, which is a type of professional liability insurance that protects businesses from claims of negligence or mistakes in their professional services.