While primary insurance policies offer significant amounts of Liability coverage, there is a maximum coverage limit provided by primary policies. While Excess Liability Insurance policies do not broaden the coverage of an underlying policy, they do provide higher coverage limits for legal suits.
As costs associated with liability suits continue to rise, more and more Massachusetts businesses are turning to Excess Liability policies for additional protection. Any business that desired to increase the limits of a single primary policy should consider supplementing their policy with Excess liability coverage. In these situations, Excess Liability is usually the most affordable way to obtain extra protection. Businesses that want to enhance coverage, or to supplement multiple policies simultaneously, are frequently better off with an Umbrella policy.
Businesses are turning to Excess liability policies partly because these policies offer very affordable. Since they only increase the limits of an underlying policy, rather than provide additional coverage types, they remain affordable.
Umbrella Liability Insurance is another form of secondary liability coverage, but it differs from Excess liability coverage in important ways. Excess liability policies tend to adopt the terms, conditions and exclusions of one underlying policy that they supplement. Umbrella policies often come with their own terms, conditions and exclusions, and these may differ from what an underlying policy offers. Since Umbrella policies do not strictly follow an underlying policy, they’re able to fill in coverage gaps, supplement multiple policies and increase limits.
Setting up an Excess Liability policy is a complex process that requires reviewing all of the underlying policy’s coverage limits. For this reason, business owners consult with one of our Business Lines Insurance professionals to assist with purchasing an Excess Liability policy. Out agents will be able to determine whether an Excess Liability insurance policy is truly the best form of supplemental insurance for a business. Our agents can review any underlying policy and compare Excess Liability rates and coverages.