What is Umbrella and Excess Liability Insurance?
Whether we are discussing coverage for an individual, family, or business, the basics of Umbrella or
Excess Liability are the same. Before getting into what is covered by these policies, it’s important to note
the changes that have occurred over the last thirty years regarding this coverage.
The term “Umbrella” seems to carry the connotation of everything under the umbrella being protected.
But that’s only partially true. It’s always been only partially true. The primary thing that both an
umbrella and excess liability do is that they provide an extra layer of liability coverage. The reason this is
both needed and important is that the basic limits of insurance in most policies may not be sufficient in
the litigious society we live in. So, the purchase of an umbrella or excess liability policy enables the
consumer to buy enough coverage to meet the needs of most lawsuits they may find themselves in.
However, unlike Excess Liability policies that only provide an extra layer of liability coverage, Umbrella
policies also provide some additional protection when or if a claim is not covered by an underlying
policy. This is where the umbrella idea originates. We bring all of this up only to say that in 2024, most
umbrella policies are not much more than excess liability policies. Most now contain exclusions that
exclude the same things that are excluded in the underlying policies. So, most customers today are
basically purchasing excess liability policies – regardless of what the policy is called. Regardless, the
coverage is desperately needed.
Why is Umbrella and Excess Liability Insurance Important?
There are three significant reasons this coverage is important.
- First, all basic liability policies (like auto, homeowners, general liability, and employers' liability)
have a maximum limit of insurance that is not very large. For most, $1,000,000 per occurrence is
the maximum limit that can be purchased. But many claims exceed $1,000,000. Especially if
there are serious medical injuries, permanent disability, or loss of life. - Second, as already mentioned, lawsuits today are being settled in the multiple of millions of
dollars. An individual or business simply risks all of their assets if they don’t have an umbrella or
excess liability policy in place with sufficient limits of coverage. - Finally, because knowledgeable businesses understand the need for high limits of liability
coverage to cover claims, many such businesses today are contractually required those they
work with to have higher limits. Having high limits today is a requirement for many types of
business to operate. In fact, certain government loans on property require such limits to protect
the governments interest in a loan.
- First, all basic liability policies (like auto, homeowners, general liability, and employers' liability)
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your investment and minimize financial risks with Umbrella or Excess Liability Insurance. Contact
our team today to learn more about our insurance solutions and how we can help safeguard your
ownership or business interests.