What does Drop Down Provision mean? Read on to discover the definition & meaning of the term Drop Down Provision - to help you better understand the language used in insurance policies.
Drop Down Provision
A clause in umbrella policies providing that the umbrella will "drop down" over reduced or exhausted underlying policy aggregate limits. Some umbrellas maintain their own coverage terms when they drop down; others assume those of the primary policy.
We hope the you have a better understanding of the meaning of Drop Down Provision.