It’s no secret that commercial insurance is complicated. There’s a wide variety of plans, payouts, and rates covering some situations while excluding others. Ensuring that you have adequate coverage for your needs can feel a bit like trying to stitch a quilt together out of random scraps of cloth – with pieces of different sizes and shapes, how can you make something regular and consistent?
Vos Insurance also offers umbrella and excess liability policies for businesses throughout Texas. Although there are differences between these two policies, they both help “fill in the gaps” that might exist in your commercial insurance policy
Do You Need Umbrella Excess Library Insurance in Texas?
Depending on your situation, either maximum liability or umbrella coverage might be more suitable for your needs. The decision is based on the underlying coverage you already have and potential “weak spots” in that coverage. In other words, either of these two types of coverage can look very different.
Imagine a worst-case scenario that your underlying policy won’t cover, and that will give you an idea of what you should look for in a maximum liability or umbrella policy. Another benefit of these plans is that, since they are rarely paid out, they can often be a surprisingly affordable add-on to your overall coverage.
get a quote
What Umbrella/Excess Liability insurance covers
You may hear the terms “umbrella insurance” and “excess liability insurance” used interchangeably, as they both have the same primary function of supplementing your overall business insurance. They do this in slightly different ways, however.
Excess liability insurance covers any shortfall in your regular policy. For example, if the general liability insurance on a manufacturing plant in downtown Austin maxes out at $500,000, but a fire in the plant causes $600,000 of damages, an excess liability policy would ensure that the remaining $100,000 is covered.
Umbrella insurance offers the extra payout capabilities of maximum liability insurance, but it can also provide broader coverage that your underlying policy may not include. For example, it may add worldwide coverage to the more limited coverage territory you initially had. The extent of this extra coverage can vary widely, however.
Although customers sometimes view umbrella policies as a simple “one size fits all” perk to their overall coverage, these plans’ flexibility means that each one is actually quite unique. Consequently, it’s important to make sure that you look at the details of an umbrella policy to make sure it is optimized for your needs.
No two umbrella insurance policies are the same since every business’s needs are unique – especially in Austin. That’s why we work hard to understand your insurance needs before finding a provider for an umbrella policy to cover any gaps in your primary business insurance policies.
If you are worried that umbrella insurance will add a significant cost to the cost of safeguarding your business, have no fear! Insurance premiums are calculated based on risk. The chance you will file a claim against your umbrella insurance isn’t as high as the likelihood that your primary insurance policy will be put to use. For that reason, the premiums are usually lower to reflect that lower risk level.
With 20 years of combined experience in serving both individuals and businesses, the Vos Insurance team is well-acquainted with the wide variety of circumstances our customers may face. And with our comprehensive array of services, we also consider ourselves experts in all kinds of insurance’s ins and outs.
This means that, when it comes to finding a solution for maximum liability or umbrella coverage that perfectly complements your current coverage, we’re more than ready to point you in the right direction. Get in touch with us today for a free consultation!