Umbrella insurance is aptly named in that it serves as an umbrella above your business’s other policies. The various policies you have for your business, such as general liability, have coverage limits. In the event that damages or a lawsuit result in costs that exceed the limits of one of your policies, your umbrella policy will be there to make up the difference. For example, if your company has $1 million in general liability insurance and is sued for $1.5 million, an umbrella policy could cover the remaining $500,000.