Two Types Of Insurance, Combined

A Business Owner’s Policy combines two different types of insurance that most, if not all, business owners need – property and liability insurance. Instead of purchasing each kind of coverage and managing them separately, you’ll have one policy that covers the various types of claims you or someone else can make.

What’s Included

Property insurance. This covers damage against your owned or rented business property, like fire, theft, and vandalism.

General liability insurance. This protects you from claims made against your business from people who may have been injured on your property, disgruntled employees, etc. It also covers defamation and libel.

Business income insurance. This is also called business interruption insurance and helps cover income loss while your property is damaged and unusable.

What Else Can I Add?

You can also add other types of business insurance to your BOP policy, like:

Workers’ compensation insurance. Workers’ comp is generally required if you have employees and covers the cost of lost wages and medical care for employees who are hurt on the job.

Professional liability insurance. This covers lawsuits filed by anyone who claims your professional services or advice caused them to incur a loss.

Data breach insurance. This covers financial losses associated with hacking and data breaches, including IT service, new hardware and software, and compliance fines.

Auto insurance. If your business utilizes one or more company vehicles, you’ll need a comprehensive auto insurance policy to cover accidents.

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The future is unpredictable. That’s why safeguarding your company against unforeseen disasters and potential financial devastation is paramount. A standard insurance policy can provide essential coverage, but it may not always be sufficient to protect your business from large, unexpected losses. This is where a commercial excess liability policy becomes invaluable. In this blog, we’ll explore the benefits of commercial excess liability insurance and why it’s a crucial addition to your risk management strategy.

What Is Excess Liability Insurance?

Commercial excess liability insurance is a specialized coverage designed to protect your business from substantial and unexpected events that could lead to catastrophic financial consequences. Unlike standard insurance policies, which have predefined limits, excess liability insurance provides an extra layer of protection when your primary insurance coverage is exhausted. This extra coverage can provide a generous financial cushion beyond your insurance’s coverage, ensuring that your business remains financially secure even in the face of the most expensive claims.

Who Is Excess Liability Coverage Right For?

Commercial excess liability coverage is not limited to specific industries; it’s a versatile solution that can benefit a wide range of businesses. Some of the industries that can particularly benefit from this coverage include:

Manufacturers: Protecting against product liability claims and other manufacturing-related risks.
Real Estate: Shielding against unexpected property-related liabilities.
Retail Businesses: Covering various liabilities for clothing, department, and grocery stores.

Financial Institutions: Safeguarding against financial and professional liability.
Media Companies: Excluding media liability, this coverage can protect printers, publishers, and broadcasters.
Hotels and Motels: Ensuring financial stability in the hospitality industry.
Construction Contractors: Protecting against construction-related liabilities.
Wholesalers/Distributors: Covering various distribution-related risks.

Excess Liability Insurance vs. Commercial Umbrella Insurance:

It’s important to understand the distinction between excess liability insurance and commercial umbrella insurance:

Umbrella Insurance: This type of insurance enhances the coverage limits of your primary policies and fills gaps in those policies. This could include coverage for work-related injuries, property damage, certain lawsuits, and personal liability situations.
Excess Liability Insurance: It provides an additional layer of protection for losses that exceed the limits of your primary and umbrella policies but doesn’t extend coverage beyond those underlying policies. In other words, if your insurance policy covers the relevant event, but the amount required to resolve the issue is too high for your original policy, excess liability insurance can cover the difference.

To maximize your risk management strategy, it’s often advisable to have both commercial umbrella and excess liability coverage in place. The combination of these coverages ensures that your business is comprehensively protected against various liabilities and potential financial hardships.

Protect your business today

A commercial excess liability policy offered by Phil Klein Insurance Group can provide the peace of mind you need to prepare your business for anything. Our commitment to comprehensive commercial insurance and our dedication to building lasting client relationships make us the partner you can trust in safeguarding your business.

With the capacity to cover substantial losses and the flexibility to adapt to your industry-specific risks, this coverage is a valuable addition to your risk management portfolio. Don’t leave your business vulnerable to catastrophic financial consequences – speak with a PKIG agent today to discover how you can protect your business and ensure its long-term success.