{"id":302,"date":"2023-06-29T08:40:27","date_gmt":"2023-06-29T14:40:27","guid":{"rendered":"https:\/\/www.philkleininsurance.com\/blog\/?p=302"},"modified":"2023-06-29T08:40:28","modified_gmt":"2023-06-29T14:40:28","slug":"what-is-commercial-excess-liability-insurance","status":"publish","type":"post","link":"https:\/\/www.philkleininsurance.com\/blog\/what-is-commercial-excess-liability-insurance\/","title":{"rendered":"What is Commercial Excess Liability Insurance?"},"content":{"rendered":"

Protecting your business with the right insurance coverage is crucial, and commercial excess liability insurance can play a vital role in ensuring comprehensive protection. While a commercial general liability policy provides a solid foundation, it may have limitations when it comes to handling high-cost claims \u2013 this is where commercial excess liability insurance comes in. Let\u2019s discuss what commercial excess liability insurance is and determine how it could help protect your business.<\/span>\u00a0<\/span><\/p>\n

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What is Commercial Excess Liability Insurance?<\/span>\u00a0<\/span><\/h2>\n

Commercial excess liability insurance, otherwise known as excess liability coverage or commercial excess liability insurance, is a type of insurance that extends the limits of an existing <\/span>commercial general liability insurance policy<\/span><\/a>. This means that the terms of the original plan don\u2019t change, but rather this insurance provides a higher dollar limit to safeguard your business in case a claim exceeds the amount of your existing policy.\u00a0<\/span>\u00a0<\/span><\/p>\n

The most significant advantage of a commercial excess liability policy is the increased coverage limits it offers. By adding an excess liability policy to your existing insurance, you significantly enhance your protection against high-cost claims, which could provide a financial cushion for your business. For instance, if you have a general liability policy with a $1 million limit and add an excess liability policy with a $2 million limit, your total coverage limit would be $3 million.<\/span>\u00a0<\/span><\/p>\n

This kind of additional coverage can be essential to ensuring your business can weather a potentially disastrous payout that may otherwise overwhelm your business\u2019s available funds. Maintaining commercial excess insurance is an investment in the long-term health of your business by establishing a financial safety net for a worst-case scenario.<\/span>\u00a0<\/span><\/p>\n

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What does excess liability insurance cover?<\/span>\u00a0<\/span><\/p>\n

As mentioned above, commercial excess liability insurance acts as an extension of an existing commercial liability plan, so the terms of coverage remain the same as the original plan\u2019s terms. That being said, this type of insurance is most often utilized for the following types of policies:<\/span>\u00a0<\/span><\/p>\n