Excess liability insurance: everything you need to know
Excess liability insurance is a type of insurance that provides coverage beyond the limits of your standard liability policy. This type of insurance is also sometimes referred to as an umbrella policy. Excess liability insurance can provide coverage for claims that are not covered by your standard liability policy, such as General Liability and Professional Liability Insurance. It can also provide coverage for claims that exceed the limits of your standard liability policy.
How does excess liability insurance work?
This type of insurance can help to protect your assets and income if you are sued for damages that exceed the limits of your primary policy. Excess liability insurance can also provide coverage for damages not covered by your primary policy, such as punitive damages.
There are two types of limits included in your current liability insurance: per occurrence and aggregate.
A per-occurrence limit is a type of insurance policy limit that applies to each individual incident or occurrence. This limit is the maximum amount that the insurer will pay out for any one incident, no matter how many claims are filed. Per-occurrence limits are often used in conjunction with aggregate limits, which is the total amount the insurer will pay out over the life of the policy.
The aggregate limit is the total amount of money that an insurance company will pay out for all claims arising from a single event. This limit is typically stated in the policy contract. For example, if an aggregate limit is $1,000,000 and there are three claims arising from a single event, the insurance company will only pay a total of $1,000,000 for all three claims. If the total amount of the claims exceeds the aggregate limit, the policyholder will be responsible for paying the difference.
These regulations protect small companies from devastating losses. Umbrella and excess liability insurance lessen the likelihood that growing litigation will force your company into bankruptcy by providing additional coverage when your liability policies are at their maximum limits.
How to get Excess Liability Insurance?
Here at Pascal Burke Insurance Brokerage, you can purchase excess liability coverage through our website and get a quick quote online! Once insured you can receive your certificate of insurance instantly, and you're ready to do business.
Try out our Contractor Insurance Needs Survey to easily find the best-fit insurance coverage available for your business. Our customer service representatives are ready to take your call Monday-Friday. For any inquiries, you can reach us at 877-893-7629 .