Excess Liability Insurance: Protecting Your Business from Catastrophic Losses
Excess Liability Insurance provides a critical layer of protection against catastrophic claims that could otherwise jeopardize or even close your business. One of the most common forms is the Commercial Umbrella Policy, which extends coverage above your General Liability, Auto Liability, and Workers’ Compensation (Employers’ Liability) policies. Umbrella coverage responds when a covered loss exceeds the per-occurrence or aggregate limits of your primary policies.
Some of the most significant liability exposures for businesses arise from construction defects, apartment complex incidents, or employee-related accidents during work-related activities. If negligence results in bodily injury or property damage, damages and defense costs can quickly escalate into the millions. An Excess Liability or Umbrella policy ensures your company has the financial resources to respond, covering defense costs and paying damages when claims reach extraordinary levels.
Severe claims can easily exceed $10 million. While all businesses benefit from excess liability protection, many small and mid-sized businesses remain underinsured. Even modest umbrella policies may not provide sufficient coverage, yet excess liability insurance is generally very cost-effective relative to the limits it provides.
Follow Form: Your excess policy should mirror the coverage design of your underlying policies. You want consistency, not gaps, between your primary and excess coverage.
Maintaining Underlying Coverage: If your General Liability, Workers’ Compensation, or Auto policies lapse or are cancelled, your umbrella coverage will not “drop down” to fill the gap. Continuous underlying coverage is essential to ensure full protection.
With Gatta Insurance, your business gains access to tailored excess liability solutions that safeguard against unforeseen, high-stakes claims—allowing you to operate with confidence, no matter the risk.
