Multi-million dollar lawsuits. Endless litigation. In a world where more and more people are resorting to the courts to settle disputes, excess liability insurance has become a necessary extra layer of protection against the possibility of a serious financial challenge.
Types of Liability
Most companies are careful to insure themselves against all of the possible challenges they could face. The issue is not whether they have the right coverage, but whether that coverage can cover the size of a potential judgment. Lawsuits that have results in six-figure judgments include, but are not limited to
- personal injury
- liquor law liability
- vehicle liability
- professional liability
In each of the above areas, most companies carry appropriate insurance for handling standard claims. But unusual and extreme cases, the sort that are hard to anticipate, can create financial catastrophe when they exceed the limits of that coverage.
How It Works
Excess liability goes into effect when the limits of the standard policy are exceeded. An accident that results in death or serious injury, a business decision that creates unanticipated and disastrous financial effects, a construction project that triggers an environmental catastrophe: any of these situations might be addressed through the application of an excess liability policy.
Every business is different, and every company has unique needs in terms of legal exposure. A qualified insurance agent can help you to determine what kind of excess liability insurance is the right fit for you.