6 Reasons to Invest in Excess Liability Insurance

Out of all emergency room visits, about 2.4 million are due to falls.

So what if one of those falls occurs at your house, and the injured decide to sue you?

This is where having excess liability insurance can protect you. Keep reading to discover what other scenarios would be essential to have that type of policy.

What Is Excess Liability Insurance?

Excess liability insurance is one of the most common types of insurance that helps add extra coverage to your existing insurance policies.

It can be combined with your auto, homeowners, or any other type of insurance. For example, if you were injured in a car accident, your auto insurance may not cover all the medical costs.

The excess liability insurance will help you cover any unexpected costs and surpass the maximum of your insurance coverage. There are many times when this insurance can come in handy.

1. You Employ People

Running a house can be a big effort, so many people hire people to help them. However, these people will be working on your property, making you liable if anything happens to them. For example, you may employ these people:

• Nanny
• Gardener
• Housekeeper
• Domestic staff
• Chef

If the gardener trips on a tree root while working on your garden, they could sue you for liability. This is where having this type of insurance will come in handy to protect you from these issues.

2. You Commute

If you have a long commute or are going to be traveling for work, you may want some extra coverage to protect you while you’re on the road.

During the COVID-19 pandemic, many people were working remotely and not driving as much. It was an easier time to drive, and the probability of getting into an accident was lower. However, after the end of the pandemic, there are even more people on the road now, which means that the number of accidents keeps increasing. There has also been an uptick in aggressive driving, making accidents more likely.

This means there is a higher chance of getting into an accident, especially if you drive daily for work. While your auto insurance may be able to provide some protection, you may need excess insurance to cover any extra costs.

For example, if an uninsured driver hits you, the excess liability can help cover the extra costs, even if you were the cause of the accident.

3. You’re on a Board

Another scenario you might want to consider is if you’re on your homeowner’s association (HOA) or a condominium board. The members of these boards always have to act in the interests of the residents, and the bylaws will usually outline this.

However, sometimes these board owners may have a conflict of interest. Even if the board owner did everything by the book, residents still might find fault. If this happens, board members will be liable, but having excess insurance can offer protection.

Most associations will have their insurance policies, which could cover you. But they typically won’t cover you if someone decides to bring a personal lawsuit against you.

You’ll also want to get this insurance if you’re on any board, whether it’s for a school or a charity. Your actions are more likely to be criticized, and it’s always good to have a little protection in case any legal matters arise.

4. You Regularly Host Parties

If you love holding parties and having people over to your house, you’ll also have more responsibility. Even just having people over for a few drinks comes with more liability.

For example, if someone drinks too much at your house and then drives home, you could be sued for allowing them to drive after serving too many drinks.

Some homeowner’s insurance does provide policies that will cover you in these situations. However, the coverage is typically limited, and it may not be enough to cover all the damages if you are sued.

This type of insurance offers another financial protection layer that will give you peace of mind while hosting.

However, serving alcohol while having guests over isn’t the only concern you should have. You might need liability insurance if you have people over and they slip and fall at your home. The person could end up suing you for damages.

You could also be sued for things like trampolines, walkways, or any neglected repairs that could cause an injury.

5. You Don’t Have Enough Coverage

You should look at your insurance policies and determine if they offer enough protection. Imagine what would happen in a worst-case scenario, and see if your policies would offer enough coverage where you wouldn’t have to worry.

An excess liability insurance policy can help fill in some of the gaps your policy doesn’t cover. The excess coverage goes beyond umbrella policy limits, so you’ll be fully covered if anything goes wrong.

6. You Have a Swimming Pool

If you have a swimming pool, you should make sure that you have a fence or a gate around it. If you don’t and someone falls in, you could be liable.

However, even if you have a fence or a gate, there is still a chance that someone will try to sue you. This is where having an excess insurance policy can offer you some protection.

Discover More Reasons to Invest in Excess Liability Insurance

These are only a few reasons to invest in excess liability insurance, which can help you in many scenarios.

It’s always better to be safe than sorry; we’re here to help you find the right policy.

To sign up for your excess liability insurance policy, you can start by contacting us today!