When it comes to insurance, one of the biggest issues is determining whether you have enough. You want to make sure that your typical operational risks are covered with your plan, but you also don’t want to pay for products that you don’t need. That said, most insurance products have typical coverage limits that are usually sufficient for the insured. The nature of your work may require you to exceed the usual levels of coverage. Excess insurance and umbrella insurance are two very different products with different features. Let’s take a closer look.
Excess vs. Umbrella
Excess liability insurance offers a second level of protection if your coverage needs exceed that of normal insurance. For example, a design firm that fulfills multiple contracts to many clients may consider purchasing excess professional liability insurance to defend against unfavorable outcomes due to errors and omissions. Excess insurance usually involves one or two related coverages. Umbrella policies, on the other hand, can be applied to all of your insurance plans. Unlike excess insurance, umbrella coverage addresses exposures not covered by other products.
A Customized Approach
To even the most mature businesses, some insurance products may seem interchangeable. The last thing you’d want to happen is to realize that you’re not covered in the event of a claim. Find an insurer who not only helps you come up with a plan, but also makes sure you have sufficient protection.