Commercial Excess Liability Insurance
Carrying liability insurance is a must for any business. However, you might find that even high coverage limits aren’t adequate to cover the total costs of a significant liability lawsuit. Rather than face such costs alone, turn to excess liability insurance as a solution.
Excess liability insurance is customizable to every business’s needs, and Lone Star Insurance Group provides personalized, friendly insurance services. Clients throughout greater Lubbock and all of West Texas trust us to help them get affordable quality coverage solutions.
To get your policy today, call us at (806) 796-3834 or request your free quote now.
What Is Commercial Excess Liability Insurance?
If your negligence or mistakes lead to someone (e.g., a client or vendor) being harmed, then it might be your business’s responsibility to compensate them. Liability insurance helps you repay third parties affected by your mistakes.
Still, if someone’s claim exceeds the limits of your existing liability policy, then you may still have to pay the remaining costs out of pocket. Excess liability coverage can come in handy at this time. Once a claim cost surpasses the limits of your standard plan, you can make a claim against your excess liability coverage to help cover the remaining costs.
Why Do I Need an Excess Liability Insurance Plan?
Consider a scenario where a client slips and falls in your store. They sue you for $700,000 worth of medical bills, lost income and other costs.
Under the circumstances, you would file a claim against your commercial general liability (CGL) policy to cover the injured party’s costs. However, you might find your general liability plan will only pay up to $500,000. That leaves a $200,000 gap between what you owe and what your standard policy will pay.
By making a claim against your excess liability plan for the remaining $200,000, you may avoid having to pay out of pocket. Coverage ensures that you will have support available even in cases of exceptional liability claims. Some plans can even go a step further by covering certain liability costs that are otherwise excluded from your standard policies.
Are Excess Liability Insurance and Commercial Umbrella Insurance the Same Thing?
You might have heard the terms excess liability insurance and commercial umbrella insurance used interchangeably. While they are similar, they are not identical.
• An excess liability policy is only applicable to a single policy, such as a CGL policy. You might need several to apply to different liability policies.
• A commercial umbrella plan will provide extra liability benefits across several policies—general liability, professional liability and commercial auto insurance, etc.—at once.
You can often buy an excess liability policy to apply on top of an existing umbrella plan.
What Does Excess Liability Insurance Cost?
Numerous factors can influence the cost of your excess liability policy, but most are affordable and easily integrated into your budget.
Lone Star Insurance Group is here to help you get the quality commercial excess liability coverage you deserve. Call us at (806) 796-3834 today, and we’ll be able to start finding you the coverage solutions for your needs.