More coverage provides more security.
Insurance is all about giving you peace of mind, and excess liability coverage takes that a step further. It works in conjunction with your primary insurance policy, which is typically one that covers the fees you'd have to pay someone else rather than your own cost.
An excess liability policy only pays out if and when your primary policy has paid out in full and reached your coverage limit. The excess policy then kicks in to cover any outstanding charges. As a result, an excess liability policy is less likely to pay out than a regular policy, resulting in lower premium costs.
No matter what type of insurance you have, there are always coverage restrictions. Excess liability insurance may help you avoid unexpected fees if your liability limits are reached.
The terms excess liability and umbrella policy are sometimes used interchangeably, and the line between the two can be fuzzy. Some insurers make the difference that umbrella insurance can cover risks and scenarios not covered by the normal policy, whereas excess liability simply adds a greater payout limit. Because such terminology distinctions aren't usually applied consistently, you'll need to double-check what your plans cover.
Want to learn more about how excess liability insurance might provide you with further peace of mind? Contact us to discuss your coverage requirements and choices.