To operate a large commercial property, you must account for the worth of your investment and the various risks associated with commercial buildings. While general liability coverage may protect against some incidents, excess liability insurance protects against excessive claims that extend beyond your normal coverage limits.
What Is Excess Liability Insurance?
Excess liability coverage remains in the background until you reach your underlying policy limit. The excess policy takes over when the underlying policy reaches its coverage limit.
For example, say you have a general liability policy with a limit of $1 million. Next, imagine a customer slips and falls at your property, resulting in serious injuries that cost the customer $1.5 million. Your general liability insurance would cover the first $1 million, but you would pay the excess $500,000 unless you have an excess liability policy.
While excess liability may sound similar to umbrella policies, it differs in that it only backs up one underlying policy rather than multiple policies. Excess coverage also does not expand the scope of coverage in the way an umbrella policy might.
Risks Faced by Large Commercial Properties
Large commercial properties tend to have high-value assets that require more protection. Property damage to your building and to client property or a person can cost your business thousands, if not millions, of dollars. Excess liability insurance helps account for some of the risks to commercial properties.
Slip-and-Fall Accidents
Slip-and-fall accidents can occur due to a range of reasons, with poor maintenance being the most common culprit. For instance, if you do not clear the sidewalks and walkways on your property of obstacles, jagged pieces, or cracks, an unsuspecting client could trip, fall, and sustain serious injuries.
Security Concerns
As a commercial property owner, you must protect your facility and its people. Prepare your security measures based on the probability of attempted break-ins, vandalism, and theft in your area. If you do not have adequate security, any losses come out of your pocket.
Fire and Safety Hazard
In the United States, fire damage to non-residential structures can cost over
$4 billion in a single year. Even if you take all the necessary precautions to prevent a fire, you cannot always save your building from all forms of disaster.
For example, a neighboring building or wildfire could spread to your building, regardless of what alarm or sprinkler system you have. The extensive property damage from a fire can bankrupt a business without optimal coverage.
Other risks include transportation risks, property maintenance concerns, environmental hazards, tenant and lease-related risks, transportation risks, nuisance claims, and contractor risks. Commercial insurance helps you prepare for those risks.
Seek Excess Liability Insurance for Your Commercial Property
To invest in the long-term success of your commercial property, you need complete protection, including excess liability insurance. When you have excess liability insurance coverage, you can worry less about the financial implications of damages or injuries caused to a third party.
To learn more about liability coverage for large commercial properties, contact Securance today.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future, knowing they are well protected. Contact us today at (713) 977-6606.
Comments