Excess & Umbrella Liability Insurance

What You Need To Know About Excess & Umbrella Liability Insurance

The insurance market in Canada can be somewhat confusing. There are many different insurance products available to Canadian business owners. At the same time, each policy can be customized immensely. In order to make sure you’ve obtained enough coverage, it is pertinent to better familiarize yourself with all types of insurance and each policy’s coverages and limitations. For many Ontario businesses, it will be a good idea to obtain additional coverage via an excess or umbrella liability insurance policy. How does it work? What exactly is umbrella liability insurance? You’ll find out below.

Excess & Umbrella Liability Insurance Protection

What Is It?

First and foremost, it is pertinent to familiarize yourself with the basics of umbrella liability insurance. This type of coverage is considered to be an add-on to your existing coverage. Most Canadian businesses will have some level of general liability insurance. This is definitely good, but your general liability insurance may not always be enough. In some cases, the judgment will greatly exceed your general liability insurance’s coverage limit. Without umbrella insurance, you would be out of luck and force to pay out of pocket. The umbrella insurance simply increases the amount of money you can receive from your insurance. It will only kick in when you’ve exceeded the limit of your general liability insurance.

Is Excess Liability Insurance A Necessity?

The truth of the matter is that an umbrella policy can be enormously helpful. However, it might not be a necessity for all businesses. In order to determine whether or not your business needs an umbrella policy, you should consider your exposure, risks and your budget. What is the limit provided with your general liability insurance? Will this be able to cover all scenarios? If the general liability insurance is enough on its own, you can skip the umbrella policy.

If your general liability isn’t enough, you should definitely consider investing in an umbrella policy. This additional coverage will provide you with more protection and additional peace of mind. Remember that umbrella insurance is available from most insurance providers, including Llyods of London and Intact Insurance.