Excess Liability Insurance

What Is Excess Liability Insurance? Who Needs Coverage?

There are a couple of options for businesses that need to extend coverage beyond the policy maximum on various types of insurance. They’re a bit different, though, and understanding that difference can save you a considerable amount of money by making sure you have just the right policy. Umbrella coverage is the extension most people are familiar with. It’s more common because it can provide extensions to multiple types of insurance with just one policy. For companies that need to raise their coverage above policy maximums in many areas, they’re quite cost-effective. Excess liability coverage, on the other hand, extends just one area of coverage.

Why Use Excess Liability Policies?

Many companies only need additional protection beyond policy maximums in a single area, like general liability or public liability. For them, an excess liability policy is more cost-effective, because it is not designed with the policy infrastructure to support multiple types of insurance. As such, it’s more streamlined in its definitions of covered risks and less likely to result in over-insuring your company. If you’re not sure which of the two suits your current needs, the best thing to do is to have a consultation with an insurance professional capable of quoting both policies and discussing the practical differences for your business. That can provide you with the information you need to decide.