Excess Liability, sometimes known as an Umbrella policy, will respond when the underlying liability limits of your other policies, like homeowners or auto, have been exhausted. For example, if you were injured in a car accident and needed expensive surgery, you would be on the hook to pay for any costs beyond what the at-fault driver's Liability limits would cover. This is where Excess Liability coverage would kick in to help cover those unexpected costs.

Ultimately, there are two types of excess liability insurance; an essential difference is between excess liability insurance and umbrella liability insurance.

Excess liability insurance pays for claims over existing policy limits based on the underlying scope of coverage only or what is often referred to as a follow-form basis. Separately, umbrella liability insurance serves three purposes:
It provides surplus limits when the payment depletes the limits of underlying liability policies of claims.
When the aggregate amount of the underlying policy is exhausted by claim payments, it falls and picks up where the underlying policy leaves off.
It covers some claims not covered by the underlying policies, subject to the named insured's assumption of a self-insured retention (SIR).

Ultimately, there are two types of excess liability insurance and there is an important difference between excess liability insurance and umbrella liability insurance.

Excess liability insurance pays for claims in excess of existing policy limits based on the underlying scope of coverage only or what is often referred to as on a follow form basis. Separately, the umbrella liability insurance serves three purposes:

Excess Liability Insurance is important because it can increase your coverage for

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.