excess liability insurance

Excess liability insurance includes a wide variety of plans that cover you. Liability issues are everywhere and you never know what could cause someone to present you with a lawsuit.

What does excess liability Insurance cover?

Most liability coverage in your current insurance policies only covers bodily injury and property damage to others. Umbrella policies extend those limits to provide additional coverage for bodily injury and property damage, as well as to cover things that are not listed under regular liability allowances. Every policy is different, so what is considered a covered liability issue under one insurance line may not be covered on another insurance line. Umbrella Insurance kicks in when these situations present themselves and/or you exceed the amount of liability coverage for the events that are already allowed under your regular insurance policies.

Why should you purchase excess liability Insurance?

You may not think you need an umbrella policy, but consider this: What happens to you and your family’s assets should you be sued for something that occurred at your home and the legal costs exceed the liability coverage defined by your homeowner’s policy? Who will pick up the tab if you are responsible for a multi-car accident and your liability costs exceed the limits on your car insurance? Excess liability insurance is typically purchased at a low cost to you, but will provide enough coverage so you won’t have to worry about liability costs in the future.

How excess liability Insurance Works

To completely understand how excess liability insurance works. Please consider the following. If you run a red light and accidentally hit a car, there might be significant damage to the vehicle and several people may be injured. Car repairs $20,000 and medical bills for injuries to the passengers escalating to $350,000. You’re at fault. As well, you may be liable for expenses that go way beyond the coverage limits of their insurance. This insurance policy will cover the additional liability expenses above and beyond the limits of car insurance coverage.

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Why would you need excess liability insurance?

Even with the definition of excess liability as specific as it is when it comes to auto insurance, it can be difficult to understand just how you are going to find it useful for your existing policy. So, let’s take a look at some of the most relevant reasons in which you might want to consider it.

It simply gives your maximum a bit more room

When you’ve got a car insurance policy that covers damages up to a certain amount, having excess liability insurance just offers it a bit more wiggle room in terms of what those amounts are. Not only does it add on extra protection for minimal cost, it could be worth a lot more than what you pay if the need were to ever arise for you to use it.

It adds on to your existing auto insurance coverage for convenience

Another perk is that you don’t need to change plans or even adapt the coverage that you have in place to make the most out of excess liability insurance. You will be able to keep everything the same and just add this small little protection on top of it so that you have that extra protection however you design it to fit.

It saves you money in terms of the maximum limits on your auto policy

The other thing to remember with this kind of additional liability is that, since you aren’t changing to additional coverage or different coverage, you are getting the peace of mind that comes from having the insurance boost in liability, but you aren’t having to change the plan for a bigger maximum liability in order to have it in place.

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It has never been easier to buy excess liability insurance

Do I need excess liability insurance?”

And be uncertain. The thing is, technically, you don’t. But it can worth the peace of mind that it brings to have it in place. You’ll be able to know that you are protected financially should an accident occur that requires a payout over and above your maximum in the policy. When it comes to those who have to really watch their finances, this can be worth a lot more than the monthly fee that it will cost. The thing is, too, the cost isn’t going to be all that much, particularly if it is a personal car insurance policy. You’ll find out a little bit more about that later on when you get to the financials discussed below.

Umbrella insurance policy vs excess liability insurance

Most frequent questions and answers

Another common subtopic of this one is umbrella vs excess liability insurance.

Both of these are unique, but offer unique perks as a result. Umbrella insurance is when you add coverage and limits on top of the policy in place. This is great when you are looking at giving yourself a little boost in the features that you are relying on. This would include the excess liability, but also what is covered in certain cases.

The excess liability, however, is where you simply enjoy the extra payouts on top of the auto policy in place.

There would not be any extra coverage above or beyond the policy coverage that is already there.

If you are looking for a little bit of both, you’ll find the umbrella insurance policy is a great option. If you find, however, that you just need that little bit extra in your protection, the excess liability insurance could be just what you need.

Commercial excess liability insurance

You can also get this in a commercial situation. As you can imagine, the commercial excess liability insurance definition will expand to cover commercial auto insurance policies that are already in place. This can be great when you have drivers under a commercial policy that simply need a little bit of extra protection. It can be the best way to ensure that a company doesn’t have to pay out of pocket for an otherwise costly collision or accident.

The cost of the insurance is going to depend on what policy it is put on

And the actual additional amount that you want to add to the policy itself. Personal will be cheaper than commercial, since it is only being put on personal use cars and not commercial use cars.

What is excess liability insurance?

An excess liability insurance policy is designed to cover excess limits of an underlying liability policy. It’s sole purpose is to cover additional amounts that the underlying policy can not cover. Excess liability insurance is put in place to cover catastrophic losses.

What is group personal excess liability insurance?

Group personal excess liability insurance will provide additional protection when other policies do not cover enough of the costs when involved in an accident or lawsuit.

Being involved in an accident or lawsuit you are not prepared to pay can leave you in financial ruin. Having a policy in place like Group Personal Excess Liability Insurance can help give you piece of mind in knowing you’re protected.

So, what is personal excess liability insurance coverage? And group excess liability insurance?

One is designed to cover you personally and the latter is to cover a group.