More likely than not, you are familiar with all types of insurance as a business owner. You may have commercial property insurance, commercial auto insurance, general liability, etc. But did you know, to avoid exceeding the limits of your underlying policy, you can protect yourself with excess liability insurance?
Here, we will explore this type of policy further including what determines cost, what’s covered, and more. With this information, you will be able to make an educated decision as to whether or not excess liability insurance is something your business can make good use of.
If you need to make a claim, make sure you get the most from it! At the end of this piece, we’ll tell you who to contact for that very purpose.
Excess Liability Insurance – What Is It?
For your existing insurance policy, you can extend the limits through a type of policy referred to as excess liability insurance. Other terms that you may hear in reference to this type of policy are as follows:
- Commercial excess liability insurance
- Excess liability coverage
Your current coverage isn’t technically expanded by excess liability insurance. In case of a claim, to protect your business, it just offers a higher dollar limit. Here’s how some people think of it: It’s insurance for your insurance!
Example: Let’s say there is a $1 million limit on your underlying general liability policy. Providing a greater limit on the original policy, an excess liability policy could increase your limit to $2 million, if that’s what you prefer.
Excess Liability Insurance – What’s Covered?
On top of an already existing policy, commercial excess liability insurance helps go above and beyond. For primary insurance policies, dollar limits can be increased courtesy of excess liability coverage. This includes the following:
- Workers’ compensation insurance/employer’s liability insurance
- Commercial auto insurance
- General liability insurance
- Excess liability policies will not cover anything that isn’t already covered by your primary insurance policy.
- To one and only one policy can access liability coverage apply. For example, your general liability policy-associated excess liability coverage would not be applicable if you needed additional coverage on your commercial auto policy.
Excess Liability Insurance – What Determines Cost?
There will be a number of factors that will help determine the cost of your excess liability insurance. These are as follows:
- The insurance provider
- Your location
- Time in business
- Your particular industry and what the perceived level of risk is
- Your underlying policy amount
- Your policy limits
Do You Need Excess Liability Insurance?
Excess liability insurance isn’t absolutely necessary for every small business. Consider the following to figure out whether or not it’s a good fit for you:
- What does your budget look like?
- What are your risks?
- How do you operate?
- What, exactly, does your business do?
Note: For businesses with higher risks, excess liability coverage is helpful. Talk to a broker or insurance agent if you are unsure.
When you need to make a claim, see the following…
Need To Make a Claim on Your Excess Liability Insurance Policy? Contact Stone Claims Group
To propel your claim in the right direction, we use our combined talents. We, at Stone Claims Group, apply unparalleled expertise.
Maximize your claim recovery with Stone Claims Group. Feel free to check out our FAQ page for answers to some of the most common questions.