Does Your Business Need Excess Liability Insurance?

Some forms of liability insurance do not provide enough coverage for businesses with a lot of professional risk. Excess liability insurance exists to provide that extension to the maximum payout on the original policy’s terms. Since it kicks in only when the underlying policy reaches its coverage limit, the costs are typically quite reasonable.

Not every business needs additional liability protection. Some that do will also need extended coverage beyond the narrowly tailored offerings of an excess liability policy, and for them an umbrella policy might be a better fit.

Three Questions To Assess Your Business

If you answer yes to any of the following questions, it is probably a good idea to explore excess liability insurance further. Once you look at your options, it will be easier to decide.

  • Do you have any area of liability where your potential for liability exceeds the coverage for damages?
  • Is there a reasonable scenario where different liability coverage provisions are invoked until the sum of them maximizes your existing policy?
  • Does your business involve a lot of public liability with unpredictable future coverage needs?

If any of these sound like your company, it’s a good idea to check out coverage options. Excess insurance is narrowly tailored, so you might find options for just key areas in your liability coverage portfolio. It’s a good idea to consider total liability insurance extensions alongside the cost quotes for more narrowly tailored coverage to see all your options, so keep that in mind as you shop.

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