What Is Excess Liability Insurance?
Excess Liability Insurance adds another layer of liability protection above the limits provided by underlying policies such as General Liability and Commercial Auto. Coverage is commonly available in $1 million increments and can be especially useful for contractors handling larger commercial or high-value residential projects.
Understanding Coverage Limits in Action
For example, suppose your company is working on a $1.5 million home and an accident causes severe damage to the property. If your General Liability policy has a $1 million limit for the covered loss, you could potentially face a $500,000 gap once that limit is exhausted. An Excess Liability policy may provide additional protection, subject to its terms and conditions.
Evaluating Your Liability Exposures
At Pascal Burke Insurance Brokerage, we understand the liability exposures contractors can face on larger projects. Our team can help you evaluate your existing coverage and explore excess liability options that align with your business and contractual requirements.
For businesses taking on substantial projects, having adequate liability protection can help reduce the financial impact of serious claims and lawsuits. Pascal Burke Insurance Brokerage can help you review your risks and determine whether additional liability limits make sense for your business.
When Do You Need Excess Liability Insurance?
Excess Liability may be worth considering when your business faces higher liability exposures or when a contract requires limits beyond those provided by your underlying policies. Situations may include:
A contract requires higher liability limits than your General Liability or Commercial Auto policies provide.
Your company takes on projects with values exceeding $1 million.
Your business faces significant exposure to third-party injury or property damage claims.
You want an additional layer of financial protection after the limits of an underlying policy have been exhausted.
Excess Liability is designed to increase the available liability limits above qualifying underlying policies. It generally does not replace the underlying coverage or automatically expand its terms; instead, it provides additional limits when the applicable underlying insurance has been exhausted.
Let’s Find the Right Coverage
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