Schedule of Underlying Insurance

Overview

A Schedule of Underlying Insurance is a document or endorsement attached to an umbrella or excess liability policy that itemizes every primary insurance policy over which the umbrella or excess layer provides additional coverage. It serves as the bridge between the primary policies and the excess layer, defining exactly which coverages the umbrella extends and what minimum limits the underlying policies must maintain.

How It Works

When an umbrella or excess liability policy is underwritten, the carrier needs to know what primary coverage the insured already carries. The schedule lists each underlying policy by:

• Type of coverage (General Liability, Auto Liability, Employers Liability, etc.)
• Carrier name for each underlying policy
• Policy number of each underlying policy
• Policy period for each underlying policy
• Limits that must be maintained for the umbrella to respond

The umbrella policy generally requires the insured to maintain the underlying policies at specified minimum limits throughout the umbrella's policy period. If the insured allows an underlying policy to lapse or reduces its limits below the scheduled minimum, the umbrella carrier may deny claims that would have been covered by the missing underlying layer. In that scenario, the insured is responsible for the gap.

Compliance Relevance

The schedule of underlying insurance is a critical compliance document for organizations that require vendors to carry umbrella or excess coverage. When reviewing a COI that includes an umbrella policy, compliance teams should verify that:

• Primary policies are listed: Each primary coverage type shown on the COI should appear on the umbrella's schedule
• Limits align: The underlying limits on the schedule should match or exceed what the primary COIs report
• No gaps exist: Every coverage type required by the contract should be covered by both the primary and umbrella layers
• Consistent carriers: If the schedule references specific carriers, those should match the primary COIs on file

Requesting the schedule of underlying insurance during onboarding provides an additional layer of verification. It confirms that the umbrella policy is properly structured to provide the seamless coverage that the certificate holder expects.