ACORD 131 — Umbrella / Excess Liability Section

Edition 2016/03 · PDF format

Application section for umbrella and excess liability coverage. Provides details about underlying policies, desired limits, and additional coverage requirements above primary policy limits.

What is ACORD 131?

ACORD 131 (Umbrella / Excess Liability Section) is the supplemental application required when an applicant is seeking umbrella or excess liability coverage above their primary GL, auto, and employers liability policies.

Underwriters use ACORD 131 to verify the underlying coverage limits and forms, the requested umbrella limit, and any unique exposures (high revenue, hazardous operations, large fleets) that affect umbrella pricing.

Who needs this form

Any business buying umbrella or excess liability coverage on top of primary GL, auto, employers liability, and (sometimes) liquor liability.

When to use it

Submit with ACORD 125 + the primary line section forms (126, 127, 130) whenever umbrella or excess coverage is being quoted.

Key Fields on ACORD 131

The information the form captures, in the order it typically appears:

Underlying policy details for GL, auto, employers liability (carrier, limits, retention)
Requested umbrella limit and structure (umbrella vs excess)
Self-insured retention amount
Schedule of underlying limits and erosion provisions
Specific exposures: high-hazard operations, foreign exposure, products liability concerns
Loss history under any prior umbrella

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Underlying limits below umbrella requirements

Most umbrellas require minimum underlying limits ($1M GL, $1M auto, $500K employers liability typically). Quoting an umbrella over insufficient underlying coverage causes binding delays.

Confusing umbrella with excess

Umbrella provides drop-down coverage for some claims not covered by underlying. Excess simply sits over the underlying limit on the same coverage form. Match the right product to the client's need.

Frequently Asked Questions

What's the difference between umbrella and excess liability?

Umbrella: provides limits over multiple underlying policies AND can drop down to cover claims excluded by underlying (subject to umbrella exclusions). Excess: simply provides higher limits over a single underlying policy on the same coverage form.

Do I need an umbrella if I have $1M in GL coverage?

Likely yes. A single significant liability claim (auto fatality, premises injury, products case) can exceed $1M easily. Most professional advisors recommend at least a $5M umbrella for any business with material exposure.

Related ACORD Forms

ACORD 126