Determining personal insurance coverage needs can be complex. With so many options, it can seem as if there is no end to the insurance you can purchase – and no easy way to tell how much coverage you need. In this context, excess liability insurance can seem, well, excessive.
But is it? The reality is that excess liability insurance coverage is one of the most important types of insurance you purchase. Here’s why.
What is Excess Liability Insurance Coverage?
Excess liability insurance lives up to its name: It’s insurance that covers losses “in excess” of events covered by other policies, like your home or auto insurance.
Excess liability insurance offers an added layer of protection in case something happens that isn’t fully covered by the underlying insurance policies. Excess liability coverage can address costs that “spill over” beyond the limits of that policy, too. Often, the cost for $1MM of protection is less than one hour of attorney fees.
What Excess Liability Insurance Covers
Excess liability coverage takes effect in a wide range of unexpected losses, including losses that are larger than you anticipated. Common situations that call for excess liability insurance coverage include:
- Hosting guests, entertaining, or throwing parties. While homeowners’ insurance does provide some protection against lawsuits related to entertaining social guests, its limits are often lower than needed, especially if serious injuries occur.
- Engaging in community action or philanthropy. If you sit on the board of a homeowners’ association, a charity, or a similar organization, you may need protection from personal lawsuits based on decisions you make as a member of that board – and the organization may not have what it needs to provide coverage. Excess liability policies can include options to address this gap.
- Employing domestic staff. Excess liability may offer the option to add Employment Practices Liability Insurance (EPLI) to cover you from claims made against you by employees for things like wrongful termination, harassment, and discrimination.
- Excess under and uninsured motorist benefits. Protection for your family against drivers who do not carry enough insurance to cover the damages they cause during an auto accident.
How Much Coverage Do I Need to Protect My Family?
Reach out to our team at Odell Studner today so we can help give you peace of mind from unexpected events. An excess liability assessment is part of our complimentary risk review for your personal insurance portfolio.