This form of liability insurance protects policyholders for claims in excess of the limits of their primary automobile, general liability and workers compensation policies. These policies are subject to a deductible, which may range from $250 for a personal umbrella to a minimum of $10,000 for a commercial umbrella. The coverage limits begin at $1,000,000 and can be increased as your exposure increases.
How does it work?
This type of liability insurance is designed to provide an extra layer of coverage above the primary layer. The excess insurance does not respond, however, until the limits of liability in the primary layer have been exhausted. Because of the method of response, it is often much less costly than the primary layer, per $1,000,000 of coverage. The excess layer provides not only higher limits, but catastrophic protection for very large losses. As your business grows, your liability limits should grow with it.