difference between umbrella and excess

Most businesses and individuals obtain insurance policies that they think adequately cover all of their risks. Unfortunately, some of them are mistaken and should look into a policy that extends the limits of their primary liability coverage. Excess liability coverage is often a good way to accomplish this, as long as you only want to increase the limit on one underlying policy. If you’re considering umbrella insurance as well, the main difference between umbrella and excess coverage is that umbrella coverage can apply to multiple primary policies, while excess only applies to one. To improve a single policy, excess liability has significant benefits for many people.

When Excess Liability Is a Good Idea

Most people aren’t surprised when they learn they should get excess liability because they employ domestic staff, own a boat, or hold a board position for a nonprofit or for-profit organization. However, what often catches individuals off guard is that excess liability is also recommended for anyone who owns a house, a swimming pool, a dog, or even active social media accounts.

Excess liability kicks in once the underlying policy has been exhausted. It is a simple and effective way to improve the coverage you have already secured with an underlying policy. It makes your primary policy even better.