Altima Auto Insurance Agency helps you choose from a variety of personal insurance and business insurance solutions.
Excess Liability Insurance provided by Altima Auto Insurance Agency
Sometimes things go wrong – a car accident, a guest slips and falls on your property, or a lawsuit. If you don’t have the right coverage, an unfortunate situation can compromise your financial security. Find out what Excess Liability (Umbrella) coverage is, and why it's important.
What is Excess Liability Insurance?
Excess Liability, sometimes known as an Umbrella policy, will respond when the underlying liability limits of your other policies, like homeowners or auto, have been exhausted. For example, if you were to be injured in a car accident and needed expensive surgery, you would be on the hook to pay for any costs beyond what the at-fault driver’s own Liability limits would cover. This is where Excess Liability coverage would kick in to help cover those unexpected costs.
What are the types of Excess Liability Insurance Coverage?
Ultimately, there are two types of excess liability insurance and there is an important difference between excess liability insurance and umbrella liability insurance.
Excess liability insurance pays for claims in excess of existing policy limits based on the underlying scope of coverage only or what is often referred to as on a follow form basis. Separately, the umbrella liability insurance serves three purposes:
- It provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims;
- It drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims; and
- It provides protection against some claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention (SIR).
What is the Importance of Excess Liability Insurance?
Excess Liability Insurance is important because it can increase your coverage for
- Lawsuits and legal expenses related to your business
- Property damage and bodily injury cases such as slips and falls
- Additional protection for your Commercial Auto insurance policy
And other excess liabilities on top of your primary policy
Talk to us today to know more about Excess Liability insurance.
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As an independent agency, Altima Auto Insurance Agency
Helps you find the right Excess Liability Insurance Coverage