Breaking Down the Difference Between Umbrella and Excess Liability Insurance | Umbrella insurance and excess liability coverage are two different types of insurance coverage that offer higher policy limits than other basic types of personal lines insurance and commercial insurance policies. These two terms are often used interchangeably, likely because they do bear some similarities. For one, both umbrella insurance and excess liability coverage can be applied to certain policy types – such as general liability, employer’s liability and commercial auto – when the basic policy limits have been reached. However, there are some very key differences between these two types of insurance, and it’s important to understand them in order to determine which policy is the best fit for clients looking to extend their policy limits.