Depending on your type of small business, excess liability coverage may be necessary in order to override the maximum limit your small business insurance carrier of choice may write.
Excess limits can generally be added at extra cost to the underlying small business insurance package policy, in amounts of $500,000 or $1 million dollar layers. Occasionally, these limit amounts can go up to $5 million.
An alternative to adding excess limits is purchasing what is known as “umbrella” insurance. Umbrella insurance provides excess coverage over and above most underlying small business package policies, including the business policy, business auto, and worker’s compensation.
Something good to know – your small business insurance carrier of choice may offer lower limits, which can look attractive in regards to premium amounts. However, knowledgeable business owners should contemplate liability limits of at least one million dollars. This is an additional cost that is, in most cases, affordable, and makes good sense.