What type of damages may an excess liability/commercial umbrella policy cover?

An excess liability or commercial umbrella policy is designed to provide additional coverage beyond the limits of an underlying policy, typically covering a range of liabilities. The correct choice indicates that these policies can cover bodily injury, property damage, and personal advertising injury.

Bodily injury refers to physical harm inflicted on individuals, which is a common exposure for many businesses. Property damage includes any harm that affects tangible property, which is critical for businesses that own or lease property. Personal advertising injury may include claims that arise from issues related to advertising, such as copyright infringement or defamation, broadening the umbrella of protection offered to businesses in a litigious environment.

Consequently, this type of policy is not limited to any single type of liability but instead encompasses a broader spectrum to help protect businesses from various risks they may encounter. This comprehensive coverage is essential for businesses that wish to ensure they have adequate protection against potential legal claims.