Excess Liability Insurance

What once was affordable five years ago may not be in the upcoming 10 years. Legal matters change, and insurance plans increase. Before you know it, your business could be facing a lawsuit that you struggle to cover due to your original coverage policy. Don't let this situation happen to you. By investing in excess liability insurance, you can give your business and coworkers ease of mind when it comes to staying protected against liability claims.

What Is Excess Liability Insurance?

Excess liability insurance is often compared to umbrella liability insurance — the truth is, however, that though the two are similar in their coverage, important characteristics need to be considered. Excess liability insurance is a coverage plan that will lend you additional coverage when the limits of your existing liability insurance have been exceeded. As outlined and specified in the excess liability insurance plan, the terms and conditions of the original underlying policy must be kept and followed, even when the excess liability is used.

What is Follow Form Excess Liability?

An excess liability follow form policy in New York is a type of insurance that follows the underlying policy for some or even most provisions of the policy. The coverage may relate back and also stand alone for some conditions and exclusions. This type of commercial excess casualty insurance in New York also usually requires businesses to maintain and keep the underlying policy.

So How Does Excess Liability Insurance Work?

When you pay a premium for any insurance plan, a limit will always be afforded to you. For example, in a general liability insurance plan, you might be offered coverage for up to $50,000 — any claim that's made up to that amount will be handled and covered by your insurance without any personal payments required.

Some important notices for this type of insurance concern the "single usage" of the insurance. If you pay a premium for excess liability insurance, you'll clarify what it will be used to help cover, whether that's liability claims, property damages or personal injuries.

The first time you use the excess liability insurance for an extended liability claim coverage, you'll be able to use that insurance only for another liability claim. If you need additional coverage for another legal matter, such as property damage, a second excess liability insurance will have to be opened for that area.

Benefits of Excess Liability Coverage

Your organization may need extra liability insurance for your New York location for many different reasons.

If it has been some time since you secured your underlying policy, it may no longer provide the protection you need, especially with the increasing costs of legal counsel and the higher settlements in lawsuits. If growth or mergers have increased the size of your company, your liability exposures may have changed, and a previous policy may not be enough. Major internal restructuring and new management or a jury award against your business may also prompt a need for larger liability limits.

With excess liability insurance, you have some legal wiggle room if a claim or lawsuit comes your way that exceeds the original insurance limit. Your company might grow and find itself needing to adjust some of the liability policies you enforced when you first started. In this case, excess liability insurance will cover you up to a new limit, helping you in future legal matters.

You might find that another company has issued a lawsuit that's $20,000 more than your original specified limit. With excess liability insurance, you'll be covered completely, as long as the original terms of the initial insurance coverage continue to be followed.

Do I Need Excess Liability? 

Almost every business the state could benefit from excess liability coverage in New York. Since the costs of legal claims grow rapidly and the business landscape changes quickly, simply updating a current liability insurance policy may not be enough. Even if you're vigilant about keeping your insurance up-to-date, when you need to pay the judgment for a lawsuit, you may find your policy is outdated.

For individuals, too, personal excess liability coverage in New York is important. If you live near water, own a home or other significant assets or have an above-average income or worth, you may be the target of a lawsuit. Where liability insurance coverage or a homeowners’ policy is not enough, excess liability insurance coverage becomes an important way to protect your assets.

Differences Between Excess Liability Insurance and Umbrella Coverage

While excess liability insurance and umbrella coverage are often used synonymously, it’s crucial to note some important differences. Both types of coverage offer protection above and beyond your original policy, protecting you for more than the policy limit. However, excess liability insurance coverage provides only the coverage provided in the original policy while an umbrella policy covers you above the policy limit and may include coverage for things not included in your policy.

Excess liability coverage for your New York business may, in fact, be more restrictive than your original policy. It could also cost less than umbrella coverage as a result. Neither umbrella coverage nor personal excess liability coverage in New York uses standardized forms. It's important to read your policy and review it with your insurance professional to ensure you understand what is and is not covered.

Commercial excess casualty insurance in New York may be written as a self-contained policy or a follow-form policy. If you have a follow-form excess liability policy in New York, your coverage is not defined. Instead, your excess liability follow-form policy will state that the losses are covered only if they're covered by the underlying insurance. In these cases, it's critical to review both your new policy and the underlying policy with an insurance professional so that you understand what's covered.

Get a Quote for Excess Liability Insurance

If you need an extra liability policy in New York for any reason, contact Kokkoris Insurance Services for a free quote and evaluation. Kokkoris Insurance Services already provides insurance solutions for many hospitality, restaurant and other businesses across New York State. Our responsive, customizable and customer-first options allow you to get robust coverage within your budget.

The Kokkoris Insurance Services team has years of experience and is always looking for ways to save business owners like you money while offering you more coverage. We'll also work with your company to provide risk management and solutions for your specific risks. We even grow with you, helping you update your policies as your business succeeds more and grows. If you have questions or would like a free quote, contact us today.

Get in touch with our team right away by phone or email so that we can start on finding you the right insurance solutions!

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At Kokkoris Insurance Services, we'll work to provide your business or organization with the best insurance policies and coverages in your area.

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Trust Us to Get the Coverage You Need

If you’re not sure whether you need an excess liability policy in New York, umbrella coverage or simply an entirely new insurance policy, contact Kokkoris Insurance Services for a free quote and evaluation. Our team can review your needs and your specific situation to make a personalized insurance recommendation, based on your needs, current coverage and budget. For more than 25 years, our team has been offering insurance for restaurants, hotels and other businesses across New York. Our expertise and professionalism ensure you get the coverage you need.

Kokkoris Insurance Services is ready to help make sure your business is fully covered in all aspects so that you can keep doing the work you do best and maintain your reputation. Contact us today by email or phone, and our brokers will work directly with you to match your business with your needed coverage — at the best prices offered around the five boroughs of New York!