What type of risks does a commercial umbrella policy typically cover?

A commercial umbrella policy is designed to provide additional liability coverage that goes beyond the limits of existing primary insurance policies, such as general liability, employers' liability, and auto liability policies. This type of policy helps protect businesses against large claims that could exceed the coverage limits of their underlying policies, effectively filling in any gaps in liability coverage.

For example, if a business faces a lawsuit resulting in damages that exceed the liability limits of their general liability policy, the commercial umbrella policy can step in to cover the additional costs. This makes the umbrella policy a crucial component of a comprehensive risk management strategy for businesses, allowing them to manage excess liability issues more effectively.

The other options do not accurately represent the primary function of a commercial umbrella policy. It does not specifically cover property damage claims on its own, personal automobile claims, or health-related insurance claims, which are typically handled by other types of insurance policies. Thus, the focus on excess liability coverage beyond existing limits is what makes this option correct.