Umbrella insurance is liability insurance that protects you and your assets from big-ticket lawsuit judgments against you. (Another name for umbrella insurance is "excess liability" coverage.) An umbrella policy provides liability protection above your standard homeowner, auto or Business General liability insurance and may cover you for claims that are excluded by your other liability policies.
Many people with auto and homeowner's insurance wonder if an umbrella insurance policy is really necessary. If you own property or have other assets you want to preserve, you should strongly consider umbrella insurance.