A type of third-party coverage that is activated when your base policy’s coverage limits have been exhausted, Excess Liability Insurance is designed to protect both individuals and businesses in cases where their existing insurance is not comprehensive enough.
For example, an insurer might limit the amount of liability coverage you can carry on your underlying policy. A major lawsuit that does not go your way could mean you’re forced to pay out a much larger amount than your insurance will cover. That can place a huge financial burden on your shoulders. And that’s where Excess Liability Insurance comes into play.
How much of this type of coverage do you need? The answer can be complex. Working with our experts, we’ll weigh your net worth and other factors to determine the right amount of coverage for you.
The most common umbrella policies are:
Personal Umbrella – Offers excess coverage for your automobile and homeowners policies
Commercial Umbrella – Usually aimed towards providing additional coverage related to your general business liability coverage but generally will be excess over your Auto and Employee Practices Liability as well.
Policies of this sort generally come in increments of $1 million. Though that number sounds intimidating, in fact, premiums for Excess Liability Insurance tend to be inexpensive.
To learn more about this type of business insurance, contact one of our JF Murray insurance professionals today.