How Does Umbrella and Excess Liability Coverage Differ?

Umbrella and Excess Liability Coverage

When shopping around for insurance, you may hear people use umbrella insurance and excess liability insurance interchangeably. Albeit similar, these are two very different types of policies. Both excess liability and umbrella insurance cover claims made by other individuals. Whichever policy you choose, both protect you in the case of a personal injury on your property or property damage. Here is what you need to know about excess liability and umbrella insurance.

Excess Liability

Excess liability insurance is an add-on to your existing liability policy. It does not provide you with any extra coverages that you do not already have. Instead, it incorporates the limits of your policy and covers any additional claims that are not covered in your underlying policy.

Umbrella Insurance

When it comes to umbrella vs excess liability, umbrella insurance is more flexible. Umbrella policies do not have to follow the underlying coverage. Umbrella coverage can add extra limits and additional coverages that were not originally in the liability policy. If there are gaps in your insurance, then umbrella insurance can broaden the liability so that there are fewer gaps.

Protecting your business should be a priority. To ensure that you have enough coverage, despite unprecedented events, you need either an umbrella policy or an excess liability policy for your business.