Umbrella vs. Excess Liability Coverage: Which One Do You Need?

Business liability insurance is required in most places. However, the standard coverage amounts may not offer you full protection. In that case, it is time to consider adding excess liability coverage or an umbrella policy to your insurance package.

What Is the Difference Between an Umbrella Policy and Excess Liability Coverage?

Both coverage options increase the limits on your coverage, There are a few differences between them, however. When you are considering excess liability vs umbrella coverages, it is important to understand those differences to make an informed decision.

Umbrella extends the limits of your liability coverage, but it also adds additional, broader coverage for things that are not included in your standard liability coverage. In this way, it can offer an additional layer of protection. An umbrella policy will also have its own deductible written into the policy.

Excess liability coverage, on the other hand, is limited to the items and situations outlined in your original policy. It acts as an extension of that policy when you need higher coverage limits.

Which One Do You Need?

The best policy for your needs will depend on your unique business situation. If you feel that you may need to extend your business liability limits, talk to an experienced insurance agent to determine whether excess liability or umbrella coverage is the right for your business.