100% Dedicated to Providing Insurance that Fits Contractors Needs!
Hassle-free quotations, we save Contractors on average 10%-40% per year!
(Save up to 40% OFF)
Where Contractors Go to Get Insured!
We are specialists in an array of policies that cover not only general cases but specialty contractors. Check out how we can help you below.
(Save Up To 40% OFF)
What is the difference between Excess Liability and an Umbrella Policy?
- Excess liability and umbrella coverage are two types of insurance that provide additional liability protection beyond what is offered by a standard insurance policy. The main difference between the two is the scope of coverage they provide.
- Excess liability insurance, also known as excess liability coverage or excess liability protection, is a type of insurance that provides additional liability coverage above and beyond the limits of an underlying policy. For example, if you have a homeowners insurance policy with liability coverage of $500,000 and you purchase excess liability insurance with a limit of $1 million, your total liability coverage would be $1.5 million. Excess liability insurance only kicks in after the limits of the underlying policy have been reached, and it typically covers the same types of risks and losses as the underlying policy.
- Umbrella coverage, on the other hand, is a type of insurance that provides broader coverage than a standard policy. In addition to providing liability protection beyond the limits of an underlying policy, umbrella coverage also typically covers risks and losses that are not covered by a standard policy. For example, an umbrella policy might cover personal injury, libel and slander, and false arrest, while a standard policy might not. Umbrella coverage is typically purchased in addition to a standard policy, and it provides a higher overall limit of liability protection than an excess liability policy.
- In summary, the main difference between excess liability and umbrella coverage is the scope of coverage they provide. Excess liability insurance provides additional liability coverage above and beyond the limits of an underlying policy, while umbrella coverage provides broader coverage and higher overall liability limits.
- Most commercial business policies are written in $1,000,000 increments, so therefore there is not a gap in the underlying policies. This eliminates most of the benefits of an umbrella policy as compared to an excess policy.
Ready to spend less with better coverage?
Save up to 40% OFF your Contractor Insurance Premium!