Are excess liability coverage and commercial umbrella coverage the same?
Both excess liability coverage and commercial umbrella coverage normally provide supplemental liability protection, but they differ in the extent of protection that's given.
Excess liability usually takes on the terms, conditions and exclusions of a single underlying policy. In essence, this supplemental coverage frequently extends the protections of only one primary policy.
Commercial umbrella usually comes with its own terms, conditions and exclusions. This not only allows commercial umbrella to supplement multiple underlying policies, but it also sometimes even fills in coverage gaps that underlying policies have.
Both types of supplemental liability insurance have their uses, but businesses that need multiple underlying policies’ limits extended typically are better served by umbrella insurance.
What are retentions in commercial umbrella policies?
When commercial umbrella policies fill in coverage gaps, self-insured retentions commonly apply. These generally are amounts that a business must pay out-of-pocket, before the policy will begin covering an applicable claim. The retentions work much like deductibles do in other policies.
How much are premiums for commercial umbrella policies?
Insurance companies consider many factors when setting premiums for commercial umbrella policies. Premiums overall tend to be quite affordable, however, because this is a secondary and not primary insurance.
An independent insurance agent can help businesses find the most affordable coverage that still meets their needs. Independent insurance agents aren’t connected to any one company, so they can compare quotes from multiple companies offering policies.
How can businesses in Massachusetts get quotes for commercial umbrella insurance?
For assistance with commercial umbrella insurance, contact the independent insurance agents at Norwood Insurance Agency. Our Massachusetts agents can help you explore commercial umbrella quotes from various insurers, and we have the expertise necessary to help you determine which policy quote best meets your business’s supplemental liability needs.