What is Excess Layer Liability Insurance?
Excess Layer Liability Insurance is a supplementary insurance policy that provides coverage beyond the limits of your primary liability insurance policies, such as general liability or professional liability insurance. It kicks in when your primary policy's limits are exhausted due to a large claim.
What types of liability can Excess Layer Liability Insurance cover?
Businesses in Ireland may need this insurance because it safeguards them against costly legal claims and settlements. It may also be required under a contract you have entered into. This Policy will cover expenses in the event that an incident exceeds your primary policy's limits, which could jeopardize your financial stability.
Why do businesses in Ireland need Excess Layer Liability Insurance?
Businesses in Ireland may need this insurance because it safeguards them against costly legal claims and settlements. It may also be required under a contract you have entered into. This Policy will c cover expenses in the event that an incident exceeds your primary policy's limits, which could jeopardize your financial stability.
How does Excess Layer Liability Insurance work?
When a claim exceeds the limits of your primary liability policy, your Excess Layer Liability Insurance comes into play. It covers the additional costs, such as legal fees, settlements, and judgments, up to the specified limit. Often the excess layer insurer will follow the provisions of the underlying policy and will specifically define when their layer of insurance can be claimed against, for example when the first limit is exceeded in full.
How do we get cover?
Depending on your activity and level of cover you need, the complexity varies. Our expert brokers will guide you and research both the Irish and UK market for the correct coverage you need to fulfil your contract. We will often ask for your primary layer policy and you may need to complete a specific proposal form. Start with the form on our page above to get the ball rolling.
How do I decide what limit to purchase?
It is a question that confounds every client. However you can break it down to three variables that help determine the appropriate limits:
- Your business’s unique risk profile, including exposures, loss history and tolerance for risk
- What your peers are buying in limits
- The catastrophic loss activity in your industry and adjacent industries
What is the worst forseeable aggregate exposure for you? Is the insurance market hard or soft in this category at the moment. If it is soft it could be quite affordable to go for higher limits.
To help manage costs, consider accepting restrictions on policy wording for exposures for which you are confident in your risk management controls.
Your broker will help you by offering you options in the coverage and then you can engage in a cost / benefit analysis so you get the broadest possible coverage terms.