Excess Liability Insurance for Businesses

Just as there is additional liability insurance coverage available for you as an individual through the purchase of an “umbrella” policy, there is also additional liability insurance coverage available for businesses.

Excess Liability or Umbrella Liability insurance for businesses is designed to provide additional liability coverage in excess of your existing coverage.   Excess Liability or Umbrella Liability insurance provides additional coverage against bodily injury and/or property damage, and picks up where your business auto liability, general liability or other liability coverage leaves off. Your excess or umbrella carrier can differ from your general liability carrier, and the following items can be scheduled on your umbrella: general liability, workers’ compensation, business automobile coverage, employee benefits, employment practices, etc. The premium for the umbrella is determined based on the desired limits and the premium for the underlying general liability policy.

Contact your insurance agent to inquire as to whether your business could benefit from an umbrella policy.

Do I need to purchase additional insurance coverage when renting a car?

Often our agents are asked if purchasing additional insurance from rental car companies is necessary. Although there is not necessarily a clear cut answer, it is important to know that your liability and collision coverage generally still apply.

What is liability coverage and collision coverage?

Liability Coverage: Covers injuries and property damage to others resulting from an accident. Many states require this coverage by law; however, each state has its own minimum liability requirements.

Collision Coverage: Covers damage to your vehicle in the event of an accident. Collision coverage is generally optional unless your car is financed or leased.

The most common coverage that is not included within your own automobile insurance policy is “loss of use.”  

Loss of use is further explained in the following example: If you are involved in an automobile accident in a rental car, you will be responsible for the “loss of use”  the rental car company experiences as a result of not being able to rent the car while it is being repaired. Therefore, if the car you damaged takes three days to repair, the rental car company may charge you the rental fee for those three days that the car is out of use. However, if you purchase the extended coverage through the rental car company, “loss of use” is often included and as a result may be waived as a fee.