An umbrella policy provides additional liability coverage above the limits of your basic policies. It can protect you from bodily injury liability claims and property damage liability claims. Umbrella policies also provide a broader form of coverage and can help cover legal fees, false arrest, libel, and slander.
Umbrella insurance comes into play if:
You are found liable and need to pay damages
If you are sued and need to pay for your legal defense, even if you are not found responsible
An umbrella policy kicks in once your basic liability limits have been exhausted, or the claim is excluded from the basic liability coverage.