Excess Liability Insurance Cost

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No matter what industry your business is in, general liability insurance is a great way to protect your company from the common risks you might face on a daily basis. From property damage to customer injury, liability insurance can protect your business from financial damages in a variety of circumstances.

However, in many cases, general liability insurance is not enough. Excess liability insurance policies are designed to provide additional financial protection to your business and bolster your underlying liability insurance policy.

But before you begin searching for a policy, it is important to understand the cost of excess liability insurance, what it covers, and whether or not you really need it. Read on to learn more.

We Cover in This Guide

  • How much does excess liability insurance cost?
  • What is excess liability insurance?
  • How much does it cost?
  • What does it cover?
  • Benefits and risks
  • Types of businesses that need excess liability insurance
  • Tips for buying
  • Excess liability insurance vs. umbrella insurance
  • FAQ
  • Summary

How Much Does Excess Liability Insurance Cost?

The cost of excess liability insurance policies will vary significantly based on the amount of coverage you need and the number of policies overwritten. The larger your company is, the more expensive your insurance premiums will be.

Other key factors include:

  • Business size
  • Coverage limits
  • Number of employees
  • Years in business
  • Industry experience

Getting a quote from a reliable insurance provider is the best way to get a good idea of how much you would pay for excess liability insurance.

What Is Excess Liability Insurance?

Excess liability insurance is a type of policy that provides higher limits on top of your existing policy. It is meant to close coverage gaps and offer an added layer of protection in case you exhaust your underlying insurance coverage.

When a claim is made, your original or primary liability policy will cover all damages until you exceed your claim limit. Once this happens, your excess liability insurance policy kicks in and covers the remaining costs.

What Does Excess Liability Insurance Cover?

Excess liability insurance is essentially an add-on to your existing liability policy. As such, it covers many of the same things that your general liability insurance policy does, such as:

  • Personal or bodily injury
  • Property damage
  • Theft
  • Vandalism
  • Lawsuits and legal expenses

If your business experiences incidents such as these, your excess liability insurance will kick in only after your underlying policy has been exhausted.


Every business has different needs and requirements when it comes to insurance. Some states require owners to have commercial auto or workers’ compensation insurance in order to legally operate, and some businesses are required to have general liability at a minimum.

However, even if you have these policies, the minimum limits that they carry will not completely protect you from an expensive lawsuit.

By increasing your coverage limits, excess liability insurance offers peace of mind as business owners can ensure their companies are sufficiently covered no matter what happens.

Types of Businesses That Need Excess Liability Insurance

Nearly any type of business can benefit from excess liability insurance. Even if your existing liability insurance policy offers extensive coverage, it may not be enough in some cases.

Excess liability insurance is particularly beneficial for businesses that:

  • Are in a high-risk or high liability industry
  • Are interested in expanding their existing coverage limits
  • Are concerned about potential gaps in their existing policies

Ultimately, if you operate in a high-risk environment or simply want to make sure your company is completely covered, then excess liability insurance may be the solution.

Excess Liability Insurance vs. Umbrella Insurance

Excess liability insurance and umbrella insurance are often used interchangeably, and while they are very similar, there are important differences to keep in mind.

Umbrella insurance is a type of additional liability meant to protect you against risks not covered by existing policies.

Umbrella insurance works similarly to excess liability insurance. Key differences include:

  • It can be applied to multiple policies
  • It can cover claims covered by your existing policies
  • Requires Self-Insured Retention to cover claims

The Self-Insured Retention (SIR) is the amount you must pay before your insurance covers anything.

Tips for Buying

Finding the right insurance policy can be difficult, so keep these tips in mind to make the process easier:

Shop Around: Policy costs vary greatly between insurance providers. Make sure to shop around and compare several quotes to find the best rates and coverage available.

Know Your State’s Requirements: Depending on your state, you may be required to have certain policies. Make sure to look up your local and state requirements to understand which types of coverage your business needs.

Work with an Independent Agent: Working with independent insurance agents is a great way to find fair rates and extensive coverage if you aren’t sure where to look.


Do I need umbrella insurance and excess liability insurance?
Umbrella insurance can extend your coverage to areas that are not covered by your existing policies, so if you are satisfied with your underlying liability policy, then umbrella insurance may not be necessary.

Does excess liability insurance cover additional risks?
No, excess liability insurance only increases your limits for areas covered by your primary liability policy.

Can excess liability be applied to multiple policies?
No, unlike umbrella insurance, excess liability insurance does not apply to multiple policies — only your existing liability coverage.


General liability insurance is a great way to protect your business from extreme financial damage, but it may not always be enough.

By learning more about the cost of excess liability insurance, what it covers, and who needs it, you can get the additional protection you need to ensure your business is covered from all angles.

Typical cost is


Excess liability coverage costs on average $1,000 a year per $1,000,000 in coverage. How much you need depends on the type of business, customers, revenues, and other business specific factors.

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