Duhaime's Law Dictionary

Bumbershoot Policy Definition:

Marine insurance covering liability in excess of one or more different underlying policies.

In St. Paul Travelers Companies v. Corn Island Shipyard, Justice Manion of the United States Court of Appeals adopted these words:

"A bumbershoot is a marine insurance policy covering multiple liability coverages in excess of one or more different underlying policies.

"Bumbershoot is the English word for umbrella; i.e., all encompassing."

In footnote #4 to his opinion in Anne Quinn Corporation v American Manufacturers Mutual Insurance Company, Justice Bonsal of the United States District Court (New York) wrote:

"Because basic or primary insurance is limited in respect to any one accident or occurrence to the amount insured, it is considered desirable to effect excess protection and indemnity insurance, i. e. Bumbershoot coverage.

"As to losses covered by the underlying insurances, the Bumbershoot policy responds only after the limits of the underlying insurances are exhausted; as to losses not covered by other insurance, the Bumbershoot responds initially subject to the deductible specified."


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