Getting the Extra Coverage You Need

Liability Policy

Getting the Extra Coverage You Need

When you are buying insurance for your business, you may think that a basic business owner’s policy and general liability are enough. Your agent, however, may be able to offer other suggestions that cover you more fully. Before committing to extra policies, however, it’s important to understand excess liability coverage vs umbrella policies.

Excess Liability
As reported on, an excess liability policy is simply an extension of your existing liability coverage. It follows the same terms, and it has the same limitations. An event that is not covered by your original policy will also not be covered by excess liability.

Umbrella Policy
An umbrella policy, on the other hand, can operate outside the scope of your general liability coverage. There are several ways an umbrella policy may broaden the scope of your coverage:

  • Overlooked expenses
  • Gaps in coverage terms
  • Protection beyond underlying policy limits

Many business owners find an umbrella policy more flexible than excess liability coverage. If, however, your underlying policy addresses all the risks you can expect to take, an excess liability policy may be exactly what you need.

No matter what you decide, it’s important to have all the coverage you need to protect your business in the event of legal issues. Both umbrella and excess liability can provide a useful extension to your general liability.