Excess Liability Insurance

Business Insurance for Excess Liability

Excess liability insurance provides additional liability coverage above your underlying policies, similar to commercial umbrella insurance. This coverage kicks in when claims exhaust the limits of your primary policies, providing another layer of protection against severe losses.

Why Your Business Needs This

• Catastrophic claims can exceed even generous primary policy limits
• Multiple layers of coverage provide stronger financial protection
• Major contracts may require liability limits beyond standard umbrella capacity
• Higher-risk operations need substantial liability protection

What It Covers

Excess liability coverage responds after underlying policies reach their limits, providing additional coverage for bodily injury, property damage, personal injury, and advertising injury claims. The policy follows the terms of underlying coverage, providing excess protection for general liability, commercial auto, employer's liability, and other covered exposures. Unlike umbrella policies that may provide broader coverage, excess policies typically follow form with the underlying coverage, offering the same terms and conditions at higher limits.

What's the Difference Between Excess and Umbrella Coverage?

While similar, excess policies strictly follow the underlying policy terms without broadening coverage, while umbrella policies may provide broader protection and drop down for some exposures. Excess coverage is often used in combination with umbrella policies to create multiple layers of protection. Large businesses may carry umbrella coverage with excess layers above it.

How Much Excess Coverage Do You Need?

The appropriate amount depends on your total asset value, risk exposure level, contractual requirements, and industry standards. High-risk industries like construction, manufacturing, and transportation often need substantial excess coverage. Work with your agent to structure adequate protection through multiple coverage layers.