FAQs About Excess Insurance

When it comes to protecting your business or personal assets, understanding excess insurance can make the difference between financial security and devastating loss. At McCormick Insurance Inc., serving Pembroke Pines, FL, we frequently receive questions about this coverage option.

What Is Excess Insurance?

Excess insurance provides additional coverage that kicks in when your primary insurance policy limits are exhausted. Think of it as a safety net above your standard coverage. For example, if you have a $1 million liability policy and face a $2 million claim, excess insurance would cover that additional $1 million gap. This type of coverage is particularly valuable for businesses facing high-risk exposures or individuals with significant assets to protect.

Who Should Consider Excess Coverage?

Any business or individual with substantial assets should evaluate excess insurance. High-net-worth individuals, construction companies, health care providers, and manufacturers often benefit most from this coverage. The relatively low cost compared to the protection it provides makes excess insurance an attractive option for risk management.

How Does Excess Insurance Differ From Umbrella Insurance?

While both provide additional coverage, umbrella insurance offers broader protection across multiple policy types and may cover gaps in your primary coverage. Excess insurance follows the terms and conditions of your underlying policy, simply providing higher limits.

Making the Right Choice

Understanding your risk exposure is crucial when determining your coverage needs. Consider factors like your industry, asset value, and lawsuit risks when evaluating excess insurance options.

For personalized guidance on excess insurance coverage, contact McCormick Insurance Inc. Our experienced team can help assess your needs and recommend appropriate coverage levels to protect what matters most. We’re currently serving Pembroke Pines, FL.