What is Excess Liability Insurance: How does it work?

Excess Liability Insurance

Excess Liability provides additional liability limits in $1,000,000 increments over underlying policies, such as general liability and commercial auto. Extra liability requirements are expected when working on commercial or high-value residential projects.

For Example: You are working on a house worth $1,500,000, and while working you accidentally cause the house to burn down, your existing general liability policy will only pay $1,000,000 for any single loss. You will be stuck owing the remaining $500,000!

There is no substitute for experience, so if you're trying to find the best possible excess liability in your location, you have come to the right place! Place your business in the capable hands of Pascal Burke Insurance Brokerage today!

When Do You Need Excess Liability Insurance?

Contractual requirements specify higher liability limits than what is offered by your General Liability and Commercial Auto alone.
You are working on projects with values greater than $1,000,000.
Excess Liability insurance is a type of policy that provides limits that exceed the underlying liability policy. It does not broaden the stated coverage, but will offer higher limits on the original policy. The primary purpose of Excess Liability insurance is to add a layer of protection in case the underlying insurance is exhausted of all possible resources.

Protecting your business means defending yourself against the fiscal risk of lawsuits and claims. For many businesses, one single lawsuit could be financially disastrous. Commercial property insurance protects your business assets and keeps your business running.

Typical Excess Liability Coverage for Contractors

Excess Liability

Limits (* See note below)

$1,000,000

Notes

Excess Liability should be considered for exposures to loss that exceed $1,000,000, or contractual requirements dictate the amount of excess liability must be carried.

What is covered?

Covered Losses above the first $1,000,000 of the underlying policy.

Types of policies that you can write over, General Liability and Commercial Auto

The First Layer of coverage begins at $1,000,000. Once the underlying policy has paid out its limits, the excess policy will start to pay this claim over $1,000,000. This policy will not respond to claims within the first $1,000,000 of the underlying policy.

What is not covered?

The first $1,000,000 in coverage. Your GL coverage is responsible to cover the first $1,000,000 of the claim.

Gaps that in the underlying policy, sub-limits that are below the $1,000,000, the excess policy does not drop to the sublimity, or broaden coverage, but follows the coverage of the underlying policy.

Legal defense liability, the underlying policy defense must be outside the limits of liability; the excess liability will only pay the indemnity cost above the first $1,000,000, excluding defense.

Excess Liability Insurance

Don’t spend big bucks on costly claims; with PBIB’s excess insurance, you can be sure that your business is covered for every high dollar project you take under your belt.

Excess Liability Insurance

When Do You Need Excess Liability Insurance?

Typical Excess Liability Coverage for Contractors

Excess Liability

Notes

What is covered?

What is not covered?