What type of policy must be used to increase the total amount available to pay for losses that a CGL covers?

An excess or umbrella policy is specifically designed to increase the coverage limits available for liability claims, beyond the limits of a standard General Liability (CGL) policy. This type of policy provides an additional layer of protection and can help cover significant losses that exceed the limits set forth in existing liability insurance.

The need for such policies arises from the potential for high-value claims in the construction industry, where accidents, damage to property, or personal injury may lead to substantial financial repercussions. An excess or umbrella policy effectively enhances the financial protection for a business by covering additional risks or losses that may not be fully covered by a standard policy.

In contrast, a standard liability policy typically has set limits and does not provide the additional coverage limits that are necessary for comprehensive risk management. Other types of policies, like property insurance, focus on protecting physical assets rather than liability, while a design-build policy pertains specifically to construction contracts and does not address general liability coverage in the same way.