How to Choose Between an Umbrella Policy and Excess Liability Insurance

David Sayles Insurance

As a business owner, you want to be sure your company is well-protected. Part of that protection is having enough insurance coverage. Insurance policies are typically complicated and can sometimes be hard to understand. For example, on the surface, an umbrella policy and excess liability policy look much the same. They’re actually much different, though. According to David Sayles Insurance, here is the difference in umbrella vs. excess liability insurance.

Umbrella Policy

An umbrella policy provides more insurance than a traditional liability policy and covers a wider variety of situations. Sometimes, it even has a worldwide coverage territory. However, the specifics of umbrella policies depend on the insurance agency, so it is best to ask about the coverage rather than make assumptions.

Excess Liability Policy

An excess liability policy doesn’t offer protection for a broader range of situations. It simply offers more financial protection above the limits of the coverage you already have. In some cases, it’s even more restrictive and won’t provide additional funds for certain situations.
Deciding which policy is best for you depends on your personal insurance needs. You’ll likely only need one of these, but depending on your industry and the worth of your company, you may need both. A reputable insurance agent and business advisor can help you determine which is best for your business.

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