The purpose of insurance is to provide some protection against loss that you may experience with your business, assets, and staff. The extent of your company’s liability coverage will be a significant factor in how much loss a catastrophe or other adverse incident may cost you, as all to often companies are underinsured against their risks.
Confusing Areas of Coverage
Two of the most confusing areas of insurance coverage are excess liability vs umbrella insurance. At first glance, both of these policies offer higher policy limits that more traditional lines of personal or commercial coverage. Additionally, both of these policies can be added to basic policies of general liability, commercial auto, and employer’s liability once the primary policy’s limits have been reached. However, the experts at G.A. Mavon Insurance advise that you know the differences in order to know which option will be best for your business.
- Umbrella insurance presents an extension of coverage beyond the policy limits, but it also broadens the scope of application across multiple policies and situations previously excluded from coverage.
- Excess liability coverage provided higher payout limits than what the primary insurance had first established, but is only applicable to one plan and under the standard inclusion items.
Carrying the wrong form of extended coverage can leave your company scrambling when a claim is denied. Check with your broker on options for extending your policy limits.