How Excess Liability Coverage Enhances Your Business Insurance
Business owners need to protect their investments with adequate insurance to address potential risks. One important part of risk management is excess liability insurance. When a company’s liability risks potentially exceed its standard coverage, additional coverage can make a significant difference.
Understanding Excess Liability Insurance
Excess liability coverage provides an additional safety net for your company’s finances in the face of significant liability claims. These policies kick in when a claim exhausts the liability coverage of another policy, such as auto, general liability, or commercial property coverage.
Most excess liability policies cover many costs, such as bodily injury, property damage, and personal injury. This broad scope means your company has protection against many potential risks.
Like any business insurance, excess liability has some limitations and exclusions. Intentional acts and criminal behavior are notable restrictions. This coverage protects against accidents and unforeseen events, not deliberate or unlawful actions.
Your excess liability policy will typically include three components: the primary insurance, your excess coverage, and your self-insured retention. Understanding these elements helps you understand your policy.
Sometimes you hear “excess liability” and “umbrella coverage” used interchangeably, but they’re not quite the same thing. While both provide extra liability protection, excess liability usually comes into play after you exhaust your primary policy limits. Umbrella coverage can also provide broader protection in some cases.
Benefits of Excess Liability Coverage
One of the most significant benefits of excess liability coverage is that it provides expanded coverage limits. In a world where lawsuits can result in million-dollar settlements, this additional coverage can save your company’s finances.
Excess liability also shields your business from catastrophic financial losses as a result of significant injuries and substantial medical costs. For example, a restaurant facing a food poisoning lawsuit or a construction company’s onsite accident can lead to substantial losses that could devastate the company financially.
Tailoring Excess Liability Insurance
Excess liability coverage is not a one-size-fits-all option. You should customize your policy to your company’s specific needs. That means adjusting for your industry’s inherent risk factors as well as the size of your company and any unique exposure issues for your operations.
Working with an insurance professional such as Byrnes Agency can help you determine which factors affect your liability exposure so that you get the coverage that your company needs. With an experienced professional to guide your risk assessment, you may find exposure risks you were unaware of. This ensures comprehensive protection that fits your budget as well as your operation.
Conclusion
In this fast-based business culture, protecting your business from liability risks is essential. Excess liability insurance provides you with additional coverage that your company might need in the event of a substantial loss.
Liability claims are more unpredictable than you might realize, and those costs add up quickly. One single mistake can lead to drastic financial consequences without the right coverage. Start with a comprehensive risk assessment to determine your company’s exposure, then work with a professional to ensure adequate protection. Byrnes Agency has the experience to help your company get the coverage you need.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
If you’ve enjoyed what you’ve read here and would like to know when we’ve published a new blog post, please “like” us on our Facebook page, and share this with your Connecticut neighbors.