Umbrella and Excess Insurance (Commercial)

Umbrella and Excess Insurance (Commercial) Excess liability insurance provides additional coverage for one of your liability insurance policies, typically general liability insurance. It activates when that policy reaches its limit. Commercial umbrella insurance provides additional coverage for several of your liability insurance policies. It kicks in when one of the underlying policies reaches its limit. An excess liability insurance policy, also known as excess liability coverage, offers financial protection and higher policy limits if a claim is made that exceeds the limit of an underlying liability policy. It's similar to having an additional insurance policy on top of your existing coverage. It activates when that policy reaches its limit. How do commercial umbrella and excess liability coverage work? Say you have an excess liability policy that extends the coverage of your general liability insurance. If you’re found liable for 2.5 million in damages, and your general liability policy only covers 2 million, your excess coverage would pay for the remaining 500,000. Umbrella and excess insurance policies are designed to be additional layers of protection above primary liability insurance policies, such as a commercial general liability policy. But while these two added coverage options are similar, they do come with some significant differences. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful