This policy provides extra liability insurance protection beyond existing limits and coverages of other standalone liability policies. Umbrella insurance usually provides a more cost effective way to purchase a higher limit for the various exposures that your business may face. As an example: If you cause a car accident and the cost of damages to the other car is $50,000. If your Motor policy Third Party Property damage limit is $20,000, the policy will pay this limit and leave you with a shortfall of $30,000. If you have an umbrella insurance policy with a limit of $150,000 then the shortfall will be paid under your umbrella liability policy.