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Umbrella and Excess Liability

Experienced business professionals understand that the litigious nature of our society combined with surmounting liability judgments are reason enough to purchase umbrella and excess liability insurance coverage.

That’s why Lawyers Insurance Alliance offers umbrella and excess liability coverage to supplement existing business insurance. Law firms can use umbrella and excess policies to fill in the gaps between other policies and protect against claims that exceed the value of more specific policies. 

Designed for the worst-case scenario and catastrophic loss claims, this coverage kicks in when other policies leave a balance of damages. 

Most policies follow form, meaning they abide by similar provisions and cover similar losses as the underlying policy. If an underlying policy does not cover claims, the umbrella policy may provide coverage for losses exceeding Self Insured Retention limits.’

What Is Covered Under a Commercial Umbrella Insurance Policy?

Before exploring any umbrella insurance policy, it’s important to remember that you’ll need the underlying coverage first. That means if you want a higher policy limit on your commercial auto insurance, you will need to own that type of policy already. Typically, a good rule of thumb is you can’t get an umbrella policy for a type of coverage if you don’t have that policy in the first place.

In many cases, umbrella coverage may increase your existing coverage up to a new limit. This can come in handy if your law firm is hit with a lawsuit that goes beyond your current liability coverage—otherwise, you might have to pay those additional costs out of pocket.

Here’s just one example of how a commercial umbrella policy can work:

Your client came into your office for a meeting, but on the way, they slip and fall, injuring their back. Now they are out of work for the foreseeable future. They sue you for $1.5 million in damages. However, your current general liability policy only has coverage up to $1 million.

Without an umbrella policy, you might be on the hook for that additional $500,000 over your coverage. If you have an umbrella policy that extends your coverage limit to $2 million, for instance, then that policy could help make up the difference.

Depending on the type of umbrella coverage you have, combined with your other policies, you might even have your legal fees covered, as well.

Choosing the Right Commercial Umbrella Insurance

When deciding about umbrella coverage, take the time to explore your options and closely look at the policies available to you.

If you have particular needs in coverage or limit requirements, make sure your umbrella policy covers them. Some policies don’t extend particular types of liability coverage or may require you to have specific coverage amounts. If you have questions, don’t hesitate to ask your insurance agent.

The costs of paying for damages, medical fees, or lawsuits can add up—having an umbrella policy is one way you can help safeguard your business from the unexpected.

Our team can evaluate your unique risks compared to your current coverage and suggest a tailored policy. Contact us today to get started.