Your personal umbrella policy is designed to provide protection for you and for any relatives living with you. Therefore, their policies must meet the umbrella policy's requirements for minimum underlying limits for auto liability insurance. If you are comfortable with the risk, one option for you is to exclude your family member and their vehicle(s) from coverage under your personal umbrella policy. This can be accomplished by signing an exclusion form.
Whether or not an umbrella policy provides liability protection for your small business depends on a number of factors, including whether this business exposure is covered by your underlying AAA Home Insurance policy. Business pursuits normally are not covered; however, some activities incidental to your business may be covered by special endorsement to your homeowners policy.
Personal umbrella insurance is low-cost liability coverage that provides an extra measure of security beyond the limits of liability insurance on your AAA Auto and Home Insurance policies. Because an umbrella policy provides liability coverage only, it is designed to provide protection for you and those living with you but does not cover damage to your property. It will not, for instance, extend coverage on policies such as an earthquake policy.
Personal umbrella coverage is often referred to as "secondary coverage." That's because it is, with a few exceptions, excess coverage over underlying insurance. This means that the limits of the underlying insurance (your auto and homeowner's policies) will be exhausted before the umbrella coverage is needed. The underlying insurance pays first (primary insurance"), while the umbrella policy pays second ("secondary insurance").