Excess Liability & Commercial Umbrella Insurance
Shield your business from unforeseen risks with Excess Liability & Commercial Umbrella Insurance from Melton McFadden. Our policies extend the limits of your primary coverage and fill critical protection gaps—whether it’s a high-cost legal claim or liability exposure not covered elsewhere. With robust support backed by experienced professionals, you can focus confidently on growth, knowing you’re safeguarded against the unexpected.
What Is Excess Liability Insurance?
Excess liability insurance is designed to boost the coverage limits of your existing liability policy—no added bells or whistles, just higher limits.
Let’s say someone is injured at your business and you’re found liable for $1.7 million in damages. If your general liability policy only covers $1 million, that leaves you with a $700,000 gap. But with excess liability insurance, that gap is covered—no out-of-pocket nightmare required.
A few important notes:
- Excess liability only applies to one specific policy (like general liability).
- It doesn’t broaden your coverage—it only increases the dollar amount your policy can pay.
Why Excess Liability Insurance Is a Smart Move
- Boost Your Coverage Limits: When a claim exceeds your primary policy’s limit, excess liability steps in to cover the rest.
- Protect Your Assets: Avoid having to dip into your business savings—or worse, sell assets—just to handle a claim.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance is a type of excess liability policy, but with a wider reach. It’s like putting a giant safety net under multiple policies. This type of coverage can extend the limits of:
General liability insurance
Commercial auto insurance
Employer’s liability insurance
In some cases, it can even fill in coverage gaps left by your primary policies (after you pay a Self-Insured Retention, or SIR—think of it like a deductible).
For example, if your umbrella policy has a $500,000 SIR and you’re hit with a $250,000 claim not covered by any other policy, you’d need to pay that $500,000 before your insurer steps in. If the claim is within that SIR, you’re on the hook for the full amount.
Benefits of a Commercial Umbrella Policy
- Multiple Policy Protection: One umbrella policy can increase the coverage limits across several underlying policies—great for businesses with multiple risk areas.
- Broader Liability Coverage: It can cover some types of claims your base policies don’t—like third-party injuries or property damage not outlined in your general liability policy.
Heads up: Commercial umbrella insurance doesn’t cover everything. It won’t protect you from professional errors, property damage to your own business, employee discrimination lawsuits, or anything already covered under your primary limits.
Melton McFadden Has You Covered
At Melton McFadden, we help Michigan business owners protect what matters most. Whether you need to extend a single policy with excess liability or want more comprehensive coverage with a commercial umbrella policy, our team will help you find the right fit.
We know lawsuits can be expensive. We’re here to make sure your insurance isn’t.