It’s estimated that the professional liability insurance market is expected to reach a staggering $52234.47 billion by the year 2031. When you consider the fact that businesses across all industries require protection from liabilities, this shouldn’t come as a surprise.

However, despite their importance, there’s still a lot of confusion surrounding the differences between certain types of liability insurance.

One area that often trips people up is the differences between personal excess liability insurance and umbrella insurance.

To help you understand the differences between these two areas, we’ll define both of them. Then, we’ll help you decide which one best fits your needs.

Personal Excess Liability Insurance

A personal excess liability insurance policy provides coverage that exceeds the financial limits of your underlying policy. An underlying insurance is the initial policy that’s designed to protect against potential losses.

Personal excess liability insurance is different from umbrella insurance in that it doesn’t expand the terms of your underlying policy.

Instead, it just increases the limits to protect against potentially expensive claims. If you want to learn more about the personal liability insurance asset coverage we offer here at Tom Needham Insurance Agency, you can check out this guide.

Umbrella Insurance

Instead of increasing your liability limits, umbrella insurance expands the scope of your policy coverage terms.

For example, you might use umbrella coverage to cover injuries that occur both on the job site and off the job site. However, it doesn’t increase the limits of the things they cover, just the scope.

Which One is Right for You?

The right policy for you will depend on your specific type of business. For example, let’s say you’re a construction business. Of the 2.6 million non-fatal injuries that occur in a workplace, construction tends to be the most serious.

As such, it would make sense to protect yourself with personal excess liability insurance. However, if your business faces multiple hazards, like a chemical factory, then umbrella coverage might be more appropriate.

How to Pick a Good Policy

Regardless of whether you need personal liability insurance or an umbrella, you need to make sure you get a good general insurance coverage policy. The most important thing when choosing a provider is to make sure they’re not a captive agent.

These types of insurance agents only work with one company, which means they’re limited in terms of the rates and coverage they can offer you.

Instead, go with an independent agent who works with multiple companies to find you the best policy. We also recommend following these other tips when choosing a business liability insurance policy.

Need Liability Insurance? Contact Tom Needham Insurance Agency

We hope this guide helped you learn about the differences between personal excess liability insurance and umbrella insurance. Here at the Tom Needham Insurance Agency, we know how important good liability insurance is for some businesses.

However, we also believe that fantastic coverage shouldn’t have to cost you an arm and a leg. Luckily, we’re not held captive by one insurance company.

Instead, we shop around to help find both the best rates and the best coverage for your needs. So contact us today to get the liability insurance coverage that you deserve.

Learn more about Tom Needham Insurance Agency at https://maps.app.goo.gl/bNDNbYNUWMVnCVPY7

** The information provided in this blog is intended for  general informational purposes only. It does not constitute professional advice, legal guidance, or any specific recommendations. **