Sometimes accidents you cannot predict or control happen, such as a car accident or slip and fall. But when it happens on your property, the responsibility lands with you, which can lead to a devastating aftermath after the event if you’re not protected. 

Many people do not realize the importance of insurance policies until they need them. One commonly overlooked policy is excess liability insurance, which protects you and your property in different ways.

For example, although 95% of personal injury cases are settled outside of court, settlements can run into millions of dollars, which is why it is essential to address your insurance policy.

Read on to learn everything you need to know about excess liability insurance here.

What Is Excess Liability Insurance?

Excess liability insurance helps cover unexpected and catastrophic events that exceed the limits of your general insurance policy. For example, suppose you are involved in a car accident, need extensive surgery, or were at fault. In that case, excess liability will cover the cost beyond what your other car insurance policy covers.

A variety of spaces require excess liability insurance, including companies. This insurance policy goes by various names, including commercial excess liability insurance and excess liability coverage.

Excess liability insurance works by increasing the limit covered by your insurance policy, giving you a higher limit. 

Do I Need Excess Liability Insurance?

Some people believe excess liability insurance is limited to large companies, but it can also protect you and your property. You could be exposed to more liability risks if you have the following:

  • A car you regularly drive
  • Pets
  • Domestic staff
  • A home or multiple homes
  • A swimming pool
  • A boat

These are all factors that may increase your liability risks. For example, if a worker has a slip-and-fall accident on your property, they may sustain multiple injuries. They may claim you are liable for their injuries, which could result in millions of dollars in settlement, which an excess liability policy could cover.

Another example is if you own a pet. Every day nearly 1,000 US citizens require emergency care for a dog bite. No matter how well-trained your pet is, you never know if an incident will occur that results in a dog bite, which, thankfully, excess liability insurance can cover. 

Umbrella vs. Excess Liability Insurance

Umbrella insurance is not the same as excess liability insurance. Umbrella insurance can be added to various policies, such as care insurance, or when claims do not fit a particular insurance policy category. 

You do not pay a deductible with excess liability insurance because you’ve already met it. If you are unsure which type of insurance policy is best, it is time to consult a professional.

The Best Insurance Policy for Your Needs

If you think you need excess liability insurance to protect you and your property, it is time to get advice from a professional service. They can determine what insurance policy works best for you.

RBP Insurance is a full-service insurance agency that can determine the best insurance for clients and offer the highest quality service. Contact us today to get started.