You may have heard the terms commercial umbrella insurance and excess liability insurance used synonymously. However, they do not refer to the same type of policy.
Understanding the Differences
While they may sound like similar products, it is important to understand the difference between excess liability insurance and commercial umbrella insurance. Excess liability insurance is designed to activate when a general liability insurance policy has reached its limit and only provides additional coverage for that particular policy. Commercial umbrella insurance activates when one of several liability insurance policies reaches its limit.
You may get a broader range of liability coverage with a commercial umbrella insurance policy for incidents that are not covered by your underlying insurance policies. It is crucial to take the time to read over your policy. The agents at Western Insurance Associates of Spokane, WA will work with you to make sure you understand what is covered and what is not covered by the policy that you choose.
When Do You Need Commercial Umbrella Insurance?
You can apply commercial umbrella insurance to general liability, employer’s liability, or commercial auto insurance policies. These are some of the most important policies that you can purchase to protect your business from unexpected financial loss. When you include additional coverage that kicks in once these policies have reached their limit, you reduce the risk of your business going bankrupt.
Excess liability insurance and commercial umbrella insurance are both created to offer an additional layer of protection that goes further than a primary insurance policy. If you are interested in an umbrella insurance policy or think an excess liability insurance policy is right for your small business, contact Western Insurance Associates of Spokane, WA for more information.
The differences between commercial umbrella insurance and excess liability insurance are not always clear. Give us a call today and we will review the details with you.