The term "bumbershoot policy" refers to a type of insurance policy that provides coverage for a wide range of liability risks. Specifically, it is an umbrella liability policy that offers protection beyond what is typically covered by other primary insurance policies.
The term "bumbershoot" is derived from the old English word "bumber," which means umbrella. In the context of insurance, a bumbershoot policy acts as an overarching shield, providing additional coverage in the event that claims exceed the limits of other primary policies, such as general liability, auto liability, or employer's liability insurance.
This type of policy is particularly useful for businesses or individuals who may face significant liability exposures due to the nature of their operations or activities. Bumbershoot policies offer a higher level of protection against catastrophic losses, filling gaps in coverage and providing an extra layer of security.
The coverage provided by a bumbershoot policy extends to various liability risks, including but not limited to bodily injury, property damage, personal injury, and advertising liability. It enables policyholders to have peace of mind by ensuring they are adequately protected against potentially devastating lawsuits or claims that may arise from their operations or activities.
In summary, a bumbershoot policy acts as an umbrella liability insurance coverage, offering additional protection beyond primary policies, and mitigating potential financial losses resulting from liability claims.
