Excess Liability Insurance

What is Excess Liability Insurance

Excess liability insurance, also known as umbrella insurance, provides additional coverage beyond the limits of the standard liability insurance policy. It serves as a safety net that comes into effect once the primary liability coverage is exhausted. For instance, if you are sued for an amount that is greater than the liability limits of your home or auto insurance, an excess liability policy will cover the additional costs. It’s designed to protect your assets in case of unexpected catastrophic events that might otherwise leave you financially devastated.

Coverage Provided by Excess Liability Insurance

Excess liability insurance covers a wide range of liabilities that may not be included in your standard insurance policy. These include bodily injury and property damage liabilities that you or your family members might cause to others. For example, if a guest is injured in your home, or if you cause an accident while driving, the insurance would cover the resultant claims. This policy also covers landlord liability, personal injury suits (like libel, slander, or defamation), and legal defense costs that exceed your basic policy limits. It is important to note, however, that excess liability insurance does not typically cover intentional or criminal acts.

The Broad Scope of Excess Liability Insurance

The scope of excess liability insurance goes beyond simply covering homes and automobiles. It also extends to cover lawsuits and claims related to the insured’s actions while abroad, or those related to non-business activities performed on behalf of others. For instance, if you unintentionally injure someone while on vacation overseas, your excess liability insurance can help cover the legal costs and potential settlements. This type of insurance offers an additional layer of security, ensuring that no matter the location or situation, you have an extra level of protection from financially draining lawsuits and liability claims.

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