Excess Liability Insurance Law and Legal Definition
Excess liability insurance provides an additional coverage beyond that of an underlying policy, including general liability, employer's liability, and hired and non-owned auto liability policies. For instance, if one has $1 million in general liability coverage and a covered claim is settled for $1.5 million, his or her small business’s excess liability insurance policy would cover the additional amount.
Excess liability insurance is generally the most affordable way to get higher policy limits on several other small business insurance policies. The policy can be purchased relatively cheaply. Individuals typically purchase this type of policy to protect themselves in the event that they are sued for in injury or negligence. When an individual is sued the amount may be more than what is provided by the liability coverage on an automobile or homeowners policy.