What Is Excess Liability?

Excess liability insurance provides insurance limits above and beyond a business's primary liability policies. When a claim is reported to the insurance company, the first policy to respond is the underlying primary, whether it’s auto liability, general liability or even employer’s liability. If the claim exhausts the limits in the primary policy, the excess liability policy picks up where the primary has left off.

Understanding Limits vs. Coverage

A pure excess liability policy strictly provides additional limits above the primary policy; it does not provide additional coverage. If the primary policy provides coverage for a particular claim, so does the excess liability policy. If it is not covered under the primary policy, it is not covered under the excess liability policy.

An example would be an excess fiduciary liability policy. It provides additional liability limits to cover fiduciary liability claims that exceed the primary policy. It is important to distinguish between additional limits and additional coverage.

Discuss your risk exposure with our agents to determine if there is a need for excess liability insurance.