Unraveling the complexities of insurance is no easy task. The options are all the more staggering when it comes to insuring a business. In the event of providing coverage beyond your existing policies, you will have to consider the benefits of excess liability vs umbrella insurance. The first question you should ask is whether or not umbrella insurance is right for you.
What Is an Umbrella Policy?
An effective umbrella liability insurance plan will work in tandem with any existing policies currently covering your company. If your business is held accountable for an amount exceeding the limits of your current liability coverage, an umbrella policy will act to extend those limits by only the amount needed.
Should You Get an Excess Liability Policy Instead?
It is common for umbrella insurance and excess liability insurance to be mistakenly referred to interchangeably. The subtle but critical difference is that excess liability insurance works under the same limitations as your current insurance coverage. Some businesses will not require the flexibility of an umbrella plan and can operate with peace of mind under an excess liability policy.
Insurance exists to protect your assets against the unforeseen. This applies even more so for umbrella insurance plans. If you company would benefit from flexible coverage that extends beyond the limits of your existing insurance policies, then an umbrella plan is for you.