This is a form of liability insurance protecting policyholders for claims in excess of the limits of their primary policies. This form is sometimes referred to as a commercial umbrella liability policy. The term umbrella comes from the fact that this policy provides coverage over your other commercial liability policies. The purpose of this type of policy is to provide higher limits of insurance at the lowest possible cost. Commercial umbrella policies can be cheaper than purchasing higher limits on your primary liability policies as these policies use the primary policies as deductibles. These forms are not standardized, unlike many coverage forms in the insurance industry. Because of this fact, you need an agent who takes the time to thoroughly understand your business and then offer a policy that is right for you.