auto insurance norwell MA gordon atlantic insurance homeowners insurance norwell MA gordon atlantic life insurance norwell MA gordon atlantic boat insurance norwell ma gordon atlantic business insurance norwell ma gordon atlantic
             Auto Insurance          Home Insurance           Life Insurance           Boat Insurance      Business Insurance

    Excess Liability

    An Excess Liability Policy provides additional layers of insurance coverage, typically in million dollar increments. A General Liability Policy may provide $1 million per occurrence. If a business needs higher limits, an Excess Liability Policy is the ticket.  If, for example, a vendor requires its contractors to have $5 million in coverage, the company would have a $1 million base liability policy and add a $4 million excess to get to the required $5 million dollar total.


    Because severely high awards are less common, additional layers become progressively less expensive.  For higher limits -- $25 and $50 million or higher -- we often use several insurance carriers to reach the required limit. Thus Travelers might take the first $5 million, then Liberty takes the next $10 million, Philadelphia the next $15, and so on...each providing better pricing for the layers with which they are most comfortable. This strategy also provides "spread of risk" for the carriers, meaning a single company won't own the entire claim.  The only downside to this approach is when a claim reaches into the upper levels of coverage as each carrier may have differing legal strategies, possibly complicating a speedy resolution.


    As a general rule of thumb, figure that each million dollars of insurance cost $1,000.  A $5 million Excess Liability Policy would then cost $5,000.   After the first $10 million, a lower rate per million kicks in.   For businesses with benign exposures buying insurance only to satisfy a large customer, the cost may be less.  A business with greater exposure, such as products liability, may incur a higher premium price per million.

    Always consult with a professional for obtaining this insurance to insure integration with your primary program and cost effectiveness. Look to the professionals at Gordon Atlantic Insurance for guidance on pricing strategies and designing a fit with the rest of your risk program.

    To watch Geoff Gordon present a BusinessTown video on this topic click below!

    Use the form at  right for a no obligation quote.  Have a specific question?  Call the Gordon Atlantic Insurance professionals toll free at 1-800-649-3252.

    Check out our free eBooks:


    Need More Information?

    Head to the Gordon Insurance Research Center.

    Browse more specific pages to help make insurance make sense:

         Auto Research       Home Research       Life Research

    Keeping Commercial Current

    To find out more about what we can do for you, CALL US at (781) 659-2262
    Or follow us on any of our social media pages.