Umbrella/excess insurance is a type of insurance policy that provides additional liability coverage beyond the limits of a primary insurance policy. It is designed to protect individuals or businesses from financial losses in the event of a lawsuit or claim that exceeds the coverage limits of their primary insurance policy. Umbrella/excess insurance can provide coverage for various types of liabilities, such as bodily injury, property damage, and personal liability. It is typically purchased as a separate policy and can offer higher coverage limits than primary insurance policies.
Umbrella/excess insurance typically covers claims related to liability issues that exceed the limits of primary insurance policies. This can include claims for bodily injury, property damage, personal injury, and legal fees. Umbrella/excess insurance can provide additional coverage beyond the limits of primary policies such as auto insurance, homeowners insurance, or commercial general liability insurance. It is important to review the specific terms and conditions of your policy to understand the exact coverage provided by your umbrella/excess insurance.
The amount of umbrella/excess coverage needed for a company can vary depending on various factors, such as the size of the business, the industry it operates in, the level of risk exposure, and the assets at risk. It is recommended for companies to assess their potential liabilities and consider factors such as the likelihood of lawsuits, the cost of legal defense, and the potential damages that could be awarded in a lawsuit. Companies may also want to consider their existing insurance coverage limits and determine how much additional coverage is needed to adequately protect their assets and financial interests. Consulting with an insurance professional or risk management expert can help companies determine the appropriate amount of umbrella/excess coverage needed for their specific circumstances.