The Benefits of Excess Liability Insurance You Must Know<
It is a mistake to think an ordinary liability insurance is enough for protection. It is not enough to provide coverage under every possible circumstance. There are many gaps in it. On the other hand, excess liability insurance is more than enough to cover such gaps. It is incredibly beneficial. It has numerous benefits that you must not hesitate to take advantage of. Before understanding its advantages, you must understand what this insurance entails.
What is Excess Liability Insurance?
An understanding of a regular liability insurance on part of you, as a client is a must. It is otherwise known as a primary or underlying insurance. This in itself is an indication as to why excess liability is vital.
Primary or underlying insurance is merely a starting point. Once you look for exclusions and see that the gaps are problematic, you will understand the need for expanded protection. Excess liability insurance only kicks in when the ordinary liability insurance is exhausted. It provides coverage when the primary policy fails.
Excess liability insurance does more than primary insurance. By recognizing this, you can buy this policy by having its benefits tailored to your needs.
Sufficiency of Coverage Under Excess Liability Insurance
Sometimes, the most comprehensive policies may fall short of protecting you. It is especially common for those facing major lawsuit(s) due to riskier activities. You might face them if you are in a profession where especially litigious customers may be encountered. Such as the filed of law, medicine, construction etc.
It will be a mistake if you think your existing liability insurance would be enough in such circumstances. You would be wise to consider extra protection from the litigious clients. A woman might sue a cosmetic surgeon if her face lift doesn’t turn out according to her expectations. A convicted criminal might sue the lawyer for putting up an inadequate defense. Only excess liability insurance would cover such circumstances and more.
Regardless, you must look at a policy’s exclusion before buying them. It would help you determine what additional benefits can you attain from coverage with excess liability policy.
Coverage of Major Business Assets Through Excess Liability Insurance
You might possess significant business assets. Upon facing a lawsuit, you might be left with no choice but to sell them to meet the award. Lawsuits can be very expensive. Even the wealthy sometimes underestimate how much they stand to lose from them. This Insurance is one of the better ways to go about protecting your assets from such circumstance. A simple cost benefit analysis can demonstrate how the cost of retaining this insurance is worth the benefits it provides.
General liability does not cover everything. To clarify, You must examine your existing policy in minute detail and see if there are no glaring gaps. In case, if you find some, cross reference these gaps with an excess liability policy and find respite in this policy. No one with significant wealth wants to be under insured.
Get Access to Excess Liability Insurance
SG Financial Inc. emphasizes on the need to acquire an excess liability insurance policy. We have seen its absolute need in numerous cases throughout our professional career. However, we specialize in solutions the clients who could benefit from excess and surplus lines. This policy can be beneficial in many different circumstances. We believe in being over prepared instead of remaining under-insured and getting caught in a conundrum. Take advantage of our offers and stay safe.