What to Know About Excess Liability Insurance

We live in a time where people have proven to be quite “sue happy”, putting assets and services at risk, especially for certain industries such as fire departments and emergency service organizations working on a tight budget. One lawsuit has the potential to jeopardize these crucial services that communities depend on. Even high levels of coverage under primary policies, a serious injury or accident can result in a financially devastating lawsuit. A strong Excess Liability insurance program is made to respond once an organization’s primary liability policy has hit its limits, providing the additional coverage required to address those severe losses.

Coverage Features and Types of Policies

Important coverage features to look for in your excess liability insurance include:

  • Following Form Over Underlying Policies
  • Duty to Defend
  • Defense Outside the Limit
  • Non-auditable
  • $10 million Capacity

Excess Liability is designed to safeguard your organization when a claim arises that exceeds the limits of the following underlying policies:

  • Commercial General Liability
  • Public Officials & Management Liability
  • Business Automobile
  • Employers’ Liability

It is important that firefighting operations have an experienced professional assist in reviewing the unique risk exposures of the organization. 

How it Works 

Is your organization fully covered for the wide range of risks it faces on a daily basis? The range of risk is both wide and deep, as one tiny slip up or mishap can cause significant losses. This insurance provides insurance limits that goes beyond a business’s primary liability policies. When a claim is reported, the underlying primary policy responds first (corresponding to the type of liability). If the claim calls for higher limits, excess liability policy picks up where the primary left off. It strictly provides additional limits above the primary policy; not additional coverage. In other words, If the primary policy covers a particular claim, so does the excess liability policy, but if it is not covered under the primary policy, it is not covered under the excess policy.

An excess insurance policy covers a business’s legal liability from a claim and the legal costs incurred in defending the claim. For a strict excess liability policy, the deductible will generally be equal to the liability  limits on the primary policy. An excess liability insurance policy will provide the peace of mind needed to focus on protecting your community. 

About Provident Fire Plus

At Provident Fire Plus, we offer custom tailored packages to best protect firefighters and volunteer firefighters. We understand the risks that emergency response teams are subjected to on a daily basis, and have worked to serve these dedicated professionals for over 87 years. For more information about our products and policies, we invite you to contact our experts today at (855) 201-8880.