I'm not sure where /when AM/MM's umbrella policy became known as a "commercial policy."
Commercial insurance is reserved for business, and an accident by your child and liability resulting from the child's or parents' negligence is personal, not commercial.
Generally, an
individual should purchase umbrella insurance if the total value of their assets, including ordinary checking and savings accounts, retirement and college savings and investment accounts, and home equity is greater than the limits of their auto or homeowner's liability.
The insurance commission of every state determines the limit of liability in your insurance policy that places caps on the maximum payout per policy.
The same is true for:
- Per-occurrence limits: The maximum amount an insurer will pay for a single event/claim.
- Per-person limits: The maximum amount an insurer will pay for one person’s claims.
- Combined limits: A single limit that can be applied to several coverage types.
- Aggregate limits: The total amount that can be paid out for all claims during a period (often a year).
- Split limits: A combination of per-occurrence, per-person, and aggregate limits.
The State of South Carolina's Insurance Commission linked below for homeowner's policy cites Comprehensive Personal Liability as an all-purpose liability policy, which follows you wherever you go--
with a few exceptions such as automobile and boating accidents.
How much umbrella insurance do you need?
Umbrella insurance provides excess liability coverage that goes above and beyond what your car and home insurance policies provide. It protects you and your assets if you face a large lawsuit.
Without personal umbrella coverage, you would have to pay out-of-pocket for any costs beyond your home or auto insurance limit. If you can’t pay, you could have a lien placed on your home. Your wages could be garnished, and your savings, retirement investments, and other assets might be up for grabs.
Types of Coverage in a Homeowner's Insurance Policy | Department of Insurance, SC - Official Website
Umbrella insurance policies start at $1 million in coverage up to $100 million plus. Calculate how much umbrella coverage you need using our umbrella insurance calculator.
www.insurance.com