The Advantages of Excess Liability for Your Business

When purchasing insurance for your business, you want to know that it will cover you for anything that can go wrong.  Having all the bases covered for every aspect of your business is important.  You can design your insurance around the structure of your business and customize it to fit all your needs.  However, your policy is only as good as the limits set forth on it.

If your business suffers a loss that exceeds your policy’s limits, you could be paying out of pocket for the remainder of the claim.  That is where an excess liability insurance policy would step in to take over the payments that exceed your primary insurance policy.  For a small premium, you can add an excess liability policy to your primary policy to increase the limits of liability significantly.  Excess liability does not offer any additional benefits; it simply offers higher monetary coverage for the benefits your original policy covers.

For example, say you are in the retail clothing business.  You have a standard business liability insurance policy.  One day a customer slips and falls in your store and breaks her leg.  She sues for medical bills.  Your business liability insurance covers some of the bills, but because the customer required extensive surgery to repair the damage and she lost time from work due to the injury, the cost far exceeds the limits of your business policy.  If you were to have an excess liability policy in place, the remainder of the medical bills and lost time fees would be covered.

Typical $1,000,000 excess business liability policies range from $450-$1000 per year depending on the type of business you own and the insurance coverage you already have.  The small upfront charge can be a lifesaver for your business if a claim were to come in.  Call us to find out more about how to further protect your business with an excess liability policy.

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