Having the best business insurance policy for your business can certainly help if something goes wrong and a liability claim is filed against the business. But once the limits of liability are met on your business insurance policy, what can you do? Of course, you can pay the remainder of the claim out of the company budget, but that may cause deficiencies in other areas of the business that need the funding. This could cause serious financial problems throughout the business which could have been avoided. angry man on phone holding briefcase

A more financially viable solution is to have an excess liability insurance policy in place to fill those gaps left by your business’s standard policy. Excess liability coverage is available for most policies. It does not offer additional coverages; it simply extends the liability limits of the original policy. It covers claims when standard policies limits have been exhausted.

For example, if you have a business liability policy with a $300,000 limit, but are sued for $400,000 your business liability policy will only cover $300,000 of the claim leaving the additional $100,000 for you to pay out of pocket. With an excess policy in place, you will be covered for that additional $100,000 for only a very nominal premium fee. The average cost to add $1,000,000 in excess liability coverage is only a few hundred dollars a year.

Once you have designed your business insurance policy to fit your business’s profile, discuss adding excess liability coverage to further protect your business finances in the event that a liability claim exceeds the limits of your original policy. Incorporating an excess liability policy can further decrease your need to worry as a business owner allowing you to focus more on the business itself. We would love to help you find the best insurance for your business. Call us with any questions.