Commercial Umbrella Insurance vs. Excess Liability Insurance

Understanding Excess Liability Insurance and Commercial Umbrella Insurance is a breeze with LKA Insurance Agency.

Excess Liability and Umbrella Liability are often confused as the same thing despite being two different coverage types.

Excess and umbrella liability insurance does not refer to the same policy. Excess liability insurance provides additional coverage for one of your liability insurance policies, such as general liability insurance. In contrast, commercial umbrella insurance provides additional coverage for several of your liability insurance policies when one of the underlying policies reaches its limit.

In essence, the most significant difference between excess liability and umbrella is that excess liability only covers one of your liability insurance policies solely, whereas umbrella covers the majority of your liability insurance policies. Regardless, both policies provide extra coverage when the underlying policy limits are exhausted.

Who needs commercial umbrella/excess liability insurance?

Any business owner that faces the following will benefit from Commercial Umbrella Insurance and/or Excess Liability Insurance:

  • High liability risks
  • Businesses with a lot of foot traffic
  • Necessity to carry high liability limits with specific clients
  • Need for greater liability protection

Either insurance policy helps protect your current policies in the event of an accident that charges above your original policy.

Do you need extra coverage for your high-risk business? Contact us for your free quote today from LKA Insurance Agency and get the coverage you deserve!

How do commercial umbrella and excess liability coverage work?

There are two aspects these coverages could work:

1. You have an excess liability policy that extends coverage of one liability insurance policy you hold

Let’s assume you have an accident for $2 million in damages with a general liability insurance policy that only covers $1.5 million. By having excess coverage, that insurance coverage would pay the remaining $500,000.

2. You have a commercial umbrella policy that extends to multiple liability insurance policies.

With a commercial umbrella policy, you can use this to protect multiple lines of insurance, including general liability insurance, hired and non-owned auto insurance, and employer’s liability insurance.

What to Remember About Excess Liability Insurance and Commercial Umbrella Insurance

Insurance is designed to protect you from catastrophic fines in the event of an accident. Ultimately, you cannot predict the future. The best way to prepare for the future is to plan for the unknown by getting the coverage you need to protect your employees, company assets, clients, and your business.

Contact us for the best insurance quotes with umbrella insurance and excess insurance today! We work with top-rated U.S. carriers that are designed to find the right policy for you, your small business, and your livelihood. Get the coverage you need today!

Visit us on Facebook to learn more insurance tips and tricks.