2 Key Differences Between Umbrella and Excess Liability Insurance

Businesses use commercial insurance to minimize risk and protect their assets, which can be sizeable. Two common options to ensure you have sufficient coverage are umbrella policies and excess liability insurance. Both extend the coverage limits on your existing policy. If you are concerned about claim amounts, they can provide additional benefits when necessary. However, there are some key differences between the two that you should know about before making a decision. On researching umbrella vs excess liability insurance, these two things stand out the most.

1. Additional Coverages

If you are happy with what is covered by your existing policy and only want to extend the value, then excess liability is a great option> however, if you want to expand coverage beyond your basic liability policy, then an umbrella policy may better serve your needs. It can provide additional and expanded coverage to existing policies without changing them.

2. Policy Specific Coverage

Another notable difference is where the new limits are applied. Umbrella coverage is not policy specific; it can extend the limits on several different types of other policies at the same time. Excess liability coverage, on the other hand, will only raise limits on a specific policy. If you want to have more than one policy impacted, you will need to purchase excess liability protections for each of them.

The best way to protect your business is with appropriate risk management strategies. The right insurance coverage can play a valuable role in those plans.

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