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Excess Liability - Peace of Mind

In a culture where litigation is commonplace, business owners have many more worries than making profits and retaining top employees.

For instance, if your product injures a consumer, your organization could face a devastating lawsuit, exponential damages, and a tainted reputation in the marketplace. Or, if a customer slips and falls on your premise and injures themselves, your business may be held liable for the medical costs of injuries to that customer - even those that exceed your General Liability policy. You also could face litigation if an advertising error results in a major lawsuit against your business.

Experienced business professionals understand that the litigious nature of our society combined with surmounting liability judgments are reason enough to purchase additional insurance coverage. To protect against an unforeseen claim and assist with its potential financial burden, many business owners wisely purchase commercial Excess Liability insurance on top of their standard insurance policies.

Excess Liability Basics

Excess Liability is one of the most important types of insurance your company can buy. It protects your business by providing additional limits of coverage that are needed during financially draining lawsuits or major claims that could ultimately result in the closure of your business.

Businesses choose Excess policies essentially to back up the limits contained in their underlying liability policies (Commercial General Liability, Business Auto, Employment Practices Liability, Workers’ Compensation, and Professional Liability). For the most part, Excess Liability is used to cover exceptionally large events or losses with low probabilities of occurrence. Without an Excess policy, these events – as few and far between as they may be – would be financially devastating to many companies.

Who Should Consider an Excess Policy?

All types of companies would benefit largely from Excess Liability insurance. Because it extends coverage so dramatically at a relatively small additional cost, many choose to pay the extra price. The amount of coverage needed will always depend on the total value of your assets. For example:

Assume a jury ordered your business to pay $3 million in damages for a liability claim, but your General Liability policy has a $2 million limit. Your company would normally be required to cover the additional $1 million. However, with a $4 million Excess Liability policy, the $2 million commercial policy would exhaust, and then the Excess Liability policy would cover the outstanding $1 million.

Contact VGM Insurance to Learn More

To learn more about managing your business risk and enhancing your existing coverage with Excess Liability insurance, contact your VGM Insurance Services Account Manager today, or reach out to us at 800-362-3363 or info@vgminsurance.com.

 

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