The excess liability and/or the umbrella liability policies are an essential component of any company's insurance program, because they're designed to protect you from devastating liability losses that exceed the limits of your primary policies - commercial general liability and commercial auto liability policies - so you don't lose your business assets.

Although excess and umbrella policies are not exactly the same, both are considered a secondary type of liability insurance that only kicks in when your base policy liability limit is inadequate, giving you added liability protection for claims and lawsuits raised against your business.

That said, umbrella insurance is broader. It not only provides additional coverage over existing liability policy limits but also insures any gaps in your company’s insurance program for any risks that are excluded by the primary policies.

Do you really need umbrella/excess liability insurance?

With growing consumer awareness and tough economic times, lawsuits are everywhere, which puts your business assets at risk. If the cost of a successful claim goes beyond the limits of your primary insurance policy, then your excess/liability insurance will automatically extend liability coverage to protect your business assets.

Without excess/umbrella insurance, you may be required to pay out-of-pocket for the additional hospital bills, legal fees, and damage expenses once your underlying primary business coverages are exhausted. If you have no assets, the court may order you to pay off the damages with your future earnings.

The right insurance solution

You can choose the amount of coverage you want with your umbrella insurance, depending on the risks that your business faces, the value of your assets, and your potential loss of future income, and adjust it accordingly as your situation changes.

At Capital Providers Insurance Services, we focus on helping you find the right insurance solution for all your needs. We constantly evaluate your company or business needs and find customized insurance products that will cater to your needs, all while extending superior customer service to give you a seamless and hassle-free experience. Contact us today to evaluate your business risks and how to adequately protect yourself.