Commercial Umbrella or Excess Liability?

All organizations should maintain robust and diverse insurance portfolios. Assessing various risks and exposures that may exist within your operations and addressing them with sufficient coverage is a necessary component of your risk management and loss control practices. After building an initial layer of financial protection, you may want to augment your coverage with an extra safety net.

Commercial umbrella insurance and excess liability insurance can be invaluable additions to your insurance package, but how do you know which is the optimal choice for your organization?

What Are Commercial Umbrella and Excess Liability Insurance?

In many ways, commercial umbrella and excess liability insurance are similar. These policies act as backup coverage for other components of your insurance portfolio. If a claim is filed against the liability portion of another policy and the losses exceed coverage limits, commercial umbrella and excess liability can provide additional funds. Certain losses excluded from your primary policies may be covered under secondary insurance. a person sitting at a table using a laptop computer

a person sitting at a table using a laptop computer

The Difference Between Commercial Umbrella and Excess Liability

Although commercial umbrella and excess liability policies generally have the same purpose, their capabilities may differ significantly. When determining which form of secondary coverage is right for your business, consider the following:

Excess liability insurance can provide additional financial assistance if the policy limits of one of your other coverages, such as general liability or errors and omissions (also known as professional liability), is exceeded.
Commercial umbrella insurance can cast a wider safety net that provides additional coverage across several policies, including general liability, employer’s liability and commercial auto liability.

Who Needs Commercial Umbrella or Excess Liability Coverage?

Regardless of size or sector, all businesses may want to consider acquiring secondary coverage, such as commercial umbrella or excess liability policies. Additional protection may be essential if you regularly face significant liability risks and exposures, such as the following:

Hosting guests, customers or other third parties on your premises
Conducting operations in off-site locations
Bidding on contracts
Storing, transporting or otherwise taking responsibility for another party’s property

Get the Right Coverage

Commercial umbrella and excess liability insurance can be critical additions to your business’s insurance portfolio. The extra layer of financial protection offered by these coverages can ensure that you can manage the aftermath of an incident for which you are at fault while limiting your out-of-pocket losses.

We’re here to help. The experts at Lone Star Insurance Group can analyze your circumstances, explore commercial umbrella and excess liability options, and ensure that you make the right choice. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Commercial Umbrella or Excess Liability?

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