Commercial Umbrella or Excess Liability

January 18, 2018

In the past it was uncommon for a company to be sued for more than a million dollars.  Now it is not uncommon for a company to have multiple such large claims going on at the same time.  A large judgment against your company could damage your reputation and it might even put you out of business.  Whether you are at fault or not you are at risk of being sued and having to defend yourself.

An Umbrella or Excess Liability policy provides additional insurance protection for your business. Umbrella or Excess Liability coverage applies in excess or above your primary, Automobile Liability, General Liability and can also go over Workers’ Compensation, Professional Liability and Directors & Officers Liability coverage.  Umbrella or Excess Liability Insurance kicks in when your primary policy limits have been exhausted.

Actual Claim Examples

A delivery van failed to stop at a red light and ran into a vehicle. The result was a $3.5-million-dollar judgment for brain damage to the injured party.

A man suffered severe food poisoning at a restaurant after eating food that was spoiled. The restaurant was sued for injuries. The award was $1.8 million dollars.

There is a distinct difference between an Umbrella and Excess Liability policy

Umbrella Liability not only provides excess limits of liability above your underlying policies, but may also provide protection when there is no underlying insurance. It also can broaden your commercial insurance to help eliminate gaps in coverage.

Excess Liability Insurance provides you with additional liability coverage above the policy limits shown on the underlying policy’s insurance schedule. This type of policy is more restrictive than an Umbrella Liability policy.

One thing to remember is that an Umbrella or Excess Liability Insurance policy will not cover everything; there are exclusions as with any other insurance policy.  However, Umbrella or Excess liability coverage still represents an excellent method to help protect your business from catastrophic claims.  Contact us to discuss securing this valuable form of liability coverage. It could help preserve your business.

Here at The Armstrong Company Insurance Consultants, we pride ourselves on expanding knowledge, customer relations and attention to every detail. Throughout our tenure we have gained expertise in the Timeshare, Hospitality and Medical Professions markets; as well as a plethora of Small Business Industries.