Commercial Umbrella/Excess Liability Insurance provides an extra layer of protection for businesses, extending beyond the limits of their primary liability policies. This coverage is crucial for safeguarding your business against catastrophic losses that could otherwise lead to financial ruin.
Commercial Umbrella/Excess Liability Insurance is a type of policy that provides additional liability coverage above and beyond the limits of your primary liability policies, such as General Liability, Auto Liability, or Employers Liability insurance. It kicks in when the limits of your underlying policies have been exhausted, offering an extra buffer of protection against large and potentially devastating claims.
While both provide additional coverage above primary policies, Umbrella Insurance can extend over multiple underlying policies and may offer broader coverage. Excess Liability Insurance typically follows the terms of a single underlying policy and doesn't expand coverage.
Any business could benefit, but it's particularly important for those with high-risk exposures, significant assets to protect, or contractual requirements for high liability limits. Examples include construction companies, manufacturers, and large retail operations.
The amount depends on various factors, including your industry, business size, assets, and risk exposure. It's best to consult with an insurance professional to determine the appropriate coverage for your specific situation.
While it provides broad coverage, it typically doesn't cover professional liability, employment practices liability, or cyber liability. These usually require separate policies.
Generally, no. Umbrella and Excess Liability policies are designed to work in conjunction with underlying primary liability policies. You'll need to have these in place first.
If a claim exceeds the limits of your primary policy, your Umbrella/Excess policy would then come into play. You would typically work with both your primary and Umbrella/Excess insurers to handle the claim.
Relative to the amount of coverage provided, Umbrella/Excess Liability Insurance is often quite cost-effective. The premium is typically much less than what you'd pay to increase the limits on all your underlying policies.
Generally, these policies only cover incidents that occur while the policy is in effect. However, some policies may offer "prior acts" coverage for an additional premium. It's important to discuss your specific needs with your insurance provider.