Commercial excess insurance is all about going one step further. It’s an added layer of protection that kicks in if the very worst happens with your business insurance policies. Most installation and new construction work carries a variety of insurance requirements for all sub-contractors including excess limits and coverage(s). Risk Suppression Partners is here to help the contractor and their broker meet those requirements to satisfy insurance obligations through our offerings.
Most business insurance policies–whether they cover commercial liability or commercial property–have a payout limit. Normally, your business would be on the hook for any expenses above and beyond this limit. This type of unexpected cost is something that could threaten the very survival of your business.
A commercial excess policy kicks in only if your main business insurance policy reaches the payout limit. At that time, the commercial excess policy would pay out the remaining costs.
For example, let’s say you have a general liability insurance policy of $1,000,000 for your business, but you must pay damages of $1,200,000. If you have a commercial excess policy in place for your business, the liability insurance policy will pay out in full first, and then the umbrella policy will pick up the remaining $200,000.
The beauty of excess insurance is that, because there’s a relatively low chance it will need to pay out, it’s often considerably cheaper to purchase than you might expect.
Commercial excess insurance is a great way to further protect your assets. Reach out, and we’ll help you to determine if it’s right for your situation.