Excess liability insurance provides additional limits above a specific underlying policy, following the same terms and conditions as that underlying policy. Unlike an umbrella policy, which can broaden coverage and sit over multiple policies, an excess policy is a strict follow-form extension of a single underlying policy. It does not expand the scope of coverage; it simply adds more dollars of protection.
For roofing contractors, the distinction between excess and umbrella matters when your broker is structuring a program to meet project-specific requirements. If a GC requires $10 million in total limits, your broker might layer a $5 million umbrella over your $1 million CGL, then add a $4 million excess policy on top of the umbrella. This layered approach is common on large commercial roofing projects where the required limits exceed what a single umbrella carrier will write.
Excess policies are priced based on the attachment point (where coverage begins) and the quality of the underlying coverage. Higher attachment points mean lower premiums because the excess carrier is less likely to pay a claim. When evaluating your insurance program for commercial roofing work, understand whether you need a true umbrella that broadens coverage or a follow-form excess that simply adds limits. Your broker should explain which structure best matches the contract requirements you face most frequently.