What is Commercial Umbrella and Excess Liability Insurance?

Commercial Umbrella and Excess Liability Insurance provides additional coverage when the limits of your underlying liability policies, such as General Liability or Commercial Auto, are exhausted. This extra coverage kicks in to help protect your business from significant financial losses in case of major claims or lawsuits. It ensures that your business is not left vulnerable to unexpected, high-cost events that exceed the limits of your primary policies.

Why do you need Commercial Umbrella or Excess Liability Insurance?

In today’s litigious environment, even small claims can escalate into costly lawsuits. If your business faces a major liability claim that surpasses the limits of your existing insurance, Excess Liability Insurance acts as a financial safety net. Without this added layer of protection, your business could be responsible for out-of-pocket expenses, jeopardizing your assets, operations, and future.

What does Commercial Umbrella or Excess Liability Insurance cover?

Commercial Umbrella and Excess Liability Insurance can extend the coverage of your existing policies by providing:

  • Additional General Liability Coverage: Extra protection against third-party claims of bodily injury, property damage, or personal injury that exceed your General Liability limits.
  • Commercial Auto Liability Extension: If your Commercial Auto policy limit is exceeded due to a large accident claim, Excess Liability can help cover the remaining costs.
  • Increased Product Liability Coverage: If a product you manufacture or distribute causes harm or damage, and the costs exceed your Product Liability policy, Excess Liability will cover the difference.

While it offers broader coverage, it does not cover risks not already included in your underlying policies, like Workers’ Compensation or Professional Liability.

What’s the Difference with General Liability Insurance?

General Liability Insurance provides essential coverage for common risks like bodily injury or property damage claims. However, if a claim exceeds your General Liability limit, your business could be left exposed. Excess Liability Insurance extends the limit of your General Liability policy, covering the gap and ensuring that a larger claim doesn’t jeopardize your financial stability.

Can You Purchase Commercial Umbrella or Excess Liability Without an Underlying Policy?

No, Commercial Umbrella and Excess Liability Insurance work in conjunction with an underlying policy, such as General Liability or Commercial Auto. It only extends the limits of an existing policy, so you’ll need to have a primary policy in place before you can add Excess Liability coverage.

Frequently Asked Questions:

Q: How does Excess Liability differ from Umbrella Insurance?
A: While both provide extra liability protection, Umbrella Insurance can also cover gaps in your primary policies, offering broader coverage for a wider range of incidents. Excess Liability only increases the limit of an existing policy without adding new types of coverage.

Q: Which businesses need Excess Liability Insurance?
A: Excess Liability Insurance is recommended for businesses of all sizes that face potential large-scale liability claims. It’s particularly useful for industries like construction, manufacturing, hospitality, and transportation, where the risk of major claims is higher.

Q: How much Excess Liability coverage should I get?
A: The right coverage depends on the size of your business, your industry, and the risks you face. Many businesses start with coverage between $1 million and $5 million, but higher limits are available depending on your needs and risk exposure.

Why should you use us to secure Commercial Umbrella or Excess Liability Insurance?

At ArcLight Insurance, we understand that each business has unique liability risks. Our commercial insurance experts are here to help you assess those risks and determine the right amount of excess coverage for your business. We work with a range of trusted carriers to ensure you get the best possible rates and coverage, offering you peace of mind that your business is protected—even in the face of substantial claims.

 

Contact us today to discuss how Commercial Umbrella and Excess Liability Insurance can protect your business from large claims and provide an added layer of security.