November 10, 2022
Excess Liability / Umbrella
Excess liability insurance (ELI), more commonly known as umbrella insurance, is one of the most important types of insurance your company can buy. It protects your business from holes or limits in existing policy coverage as well as from financially draining lawsuits. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from the types of claims that could close your business.
Businesses choose ELI essentially to back up the limits contained in their underlying liability policies (commercial general liability, business auto, employer liability, workers’ compensation and professional liability.) For the most part, it is used to cover exceptionally large events or losses with low probabilities of occurrence. Without ELI, these events – as few and far between as they may be – would be financially devastating to many companies.
ELI is also beneficial because an effective policy can save your business money and cover more assets by using fewer individual policies.
The umbrella market is often erratic. We can find you competitive quotes addressing your specific risk categories. To learn more about including excess liability/umbrella insurance to protect your company, call Reliance Partners today.
Excess or Umbrella Insurance
Many truck owners are often confused as to which type of insurance to pick. They wonder if they should invest in the Excess or Umbrella Insurance policy. Here are the characteristics of each type along with the differences between them. At Reliance Partners, we make sure that you’re fully informed so as to make a good decision as you invest in a policy for your trucks.
Characteristics of umbrella insurance
Provides extra coverage against liability
The Umbrella Insurance is a type of liability coverage that is used by many businesses today. It is designed to protect you from lawsuits demanding significant compensation. In doing so, the Umbrella Insurance protects your current assets and by extension, the future of your enterprise.
Covers multiple sources of liability
This insurance policy covers lawsuits, damaged property, and injuries. It also covers situations of personal liability. It provides protection for you in multiple situations hence the term “Umbrella.”
Delivers a unique level of protection
There are many other insurance policies which cover the same liabilities that the Umbrella Insurance does. However, a unique feature of this coverage is that it provides protection over and above the limits that other policies can offer for the same liabilities. It essentially increases your leverage as the holder of the Umbrella Insurance policy.
Increases convenience for trucking businesses
The Umbrella Insurance policy provides a strong, extra layer of protection. It accomplishes this by covering elements such as legal fees, medical bills and damage costs that exceed the limits of their individual policies.
It provides economic protection
It can provide protection from any devastating economic losses that you could suffer. Interestingly, you are automatically eligible for an Umbrella Insurance policy if you have some Commercial Liability Insurance.
You are protected against damages
In terms of property damage, the Umbrella Insurance provides coverage in case the standard policy which you had invested in is exhausted. It also provides protection if you end up destroying any other vehicle or property and are at fault.
Your health and reputation are covered
If you should suffer serious bodily injury and your current health insurance does not provide enough coverage for a full recovery, the Umbrella Insurance policy can provide a solution. It can extend the limits of your health insurance and cover the cost of medical care and recovery. This type of insurance policy also provides coverage for libel or slanderous lawsuits.
Characteristics of Excess Insurance
Extends the limit of your insurance coverage
Also known as an Excess Liability Policy, this type of coverage extends the limits of your current insurance coverage. By doing so, it increases the level of protection from any insurance policies that you have already invested in. The policy which benefits from Excess Insurance is known as an underlying liability. It can be any other type of insurance such as reinsurance.
Can include one or more policies
Excess Insurance can boost the coverage of one or more insurance policies. It allows them to provide more coverage than they normally would.
The main difference between Excess and Umbrella Insurance Policies
Excess and Umbrella insurance policies are quite similar. However, they have one main difference. There are no qualifications that you need to meet before investing in some Excess insurance. This is because it only increases your limits of liability in case you make a claim. However, you need to meet some rules before you invest in some Umbrella insurance. For example, the insurance company that is underwriting the policy needs to prove ample financial strength to cover the limits of this type of insurance.
Having understood the characteristics of Excess and Umbrella insurance, you can now make an informed decision as you pick the one to invest in. At Reliance Partners, we strive to provide you with comprehensive descriptions of each insurance type. By doing so, we arm you with data that you can use to pick what is right for your trucking business. As you pick between Excess and Umbrella insurance, it is important to have a grasp of the policies which you have already invested in. By doing so, you can pick out the most ideal type for you.