Excess Insurance Coverage
If you’re considering obtaining construction excess liability insurance, there are many factors to consider. First, you need to understand the limits of your excess insurance policy. Most policies are rated by assessing the underlying premiums and revenue of your business. In addition, construction insurance policies are subject to a variety of underwriting factors, such as the type of exposure and claims history. Additionally, construction excess liability insurance policies often include limits above general liability, automobile, pollution and professional liability coverages.
Another important factor is the contract itself. Depending on the nature of the construction project, the contract will likely stipulate coverage limits of up to $2 million for one occurrence, and up to $4 million for aggregate coverage. Although this is relatively low, the higher limit offers additional protection. When evaluating the limits of your construction excess liability insurance policy, you should also keep in mind that your policy may require additional coverage from a separate umbrella policy.
Construction companies are also exposed to higher levels of liability than other businesses. As a result, their liability policy limits may be considerably higher than the limits of a retail business. In such a case, an excess liability policy can provide peace of mind. By choosing an excess liability insurance policy with higher coverage limits, you can ensure that your business has sufficient coverage against unexpected lawsuits. Moreover, an excess liability insurance policy also lowers your premium.
An excess liability insurance policy can provide additional coverage for large claims and helps protect contractors from excessive payments. It also gives contractors additional protection when their underlying general liability policy cannot cover the amount. Besides, it can also supplement the coverage limits of other policies. As an example, say you have a business that is settling a lawsuit for $1.5 million. In this case, you’d have coverage for the additional $500,000 with your excess liability insurance.
It is important for insurers examining multi-year claims. It also provides a framework for evaluating excess coverage and discusses previous cases in other jurisdictions. Therefore, it’s critical to study this decision closely.
Construction excess liability insurance can provide primary liability coverage for general contractors and subcontractors as well as for demolition and renovation. These policies often come packaged with property coverage. This type of policy is designed to protect a company from lawsuits arising from improperly performed work, property damage, and injuries caused by subcontractors. It also covers any claim made by spectators or participants in a project. Furthermore, the insurance can cover claims from people driving off-road vehicles.
For most companies, the cost of excess liability insurance depends on the type of industry they are in. Industries with higher risks will pay higher premiums. In contrast, consulting companies, on the other hand, rarely face large liability claims, so their premiums will be lower. For instance, an excess liability insurance policy may have a limit of $1 million.