Excess Insurance

Additional coverage that extends beyond your primary policy limits.

What's Covered

Excess liability limits
Additional coverage layers
Extended protection
Higher policy limits
Gap coverage

Key Benefits

Higher coverage limits
Fills coverage gaps
Additional protection layer
Flexible coverage options

Understanding Excess Liability Insurance in Texas

Excess liability insurance provides additional coverage layers that activate when your primary insurance policy limits are exhausted. In Texas, where litigation costs and settlement amounts can be substantial, excess coverage serves as a critical safety net that protects businesses from catastrophic financial losses that could exceed primary policy limits.

Unlike umbrella insurance, which provides broader coverage and fills gaps in underlying policies, excess insurance specifically extends the limits of your existing coverage. This makes it ideal for businesses that need higher limits on specific policies like general liability, commercial auto, or professional liability without requiring the comprehensive coverage expansion that umbrella policies provide.

Texas businesses operating in high-risk industries, handling large contracts, or facing significant exposure to liability claims often require excess coverage to meet contractual requirements and protect substantial assets. Whether you're a contractor working on multi-million dollar projects, a manufacturer distributing products nationwide, or a service provider with extensive operations, excess liability insurance provides essential protection beyond standard policy limits.

Types of Excess Liability Coverage Available in Texas

Stand-Alone Excess Liability

Independent excess coverage that provides additional limits without requiring underlying primary policies. This type of excess insurance offers flexibility for businesses with unique risk profiles or those seeking coverage for specific exposures not covered by traditional primary policies.

Best for: Businesses with non-standard exposures, companies requiring excess coverage without primary policies, and operations with unique liability risks.

Following Form Excess Coverage

Excess coverage that follows the terms and conditions of your underlying primary policy. This ensures seamless coverage continuity and maintains consistent policy terms across all coverage layers, simplifying claims handling and coverage interpretation.

Best for: Businesses seeking consistent coverage terms, companies with well-established primary policies, and operations requiring uniform policy language.

Commercial Auto Excess Liability

Additional liability limits for commercial vehicle operations. Essential for Texas businesses with fleets, delivery operations, or commercial vehicles that face higher exposure to auto-related liability claims exceeding standard commercial auto policy limits.

Best for: Fleet operators, delivery companies, transportation businesses, contractors with commercial vehicles, and businesses with significant auto exposure.

Product Liability Excess Coverage

Higher limits for product-related claims that exceed primary product liability coverage. Critical for Texas manufacturers and distributors who face potential widespread product liability claims that could result in substantial damages exceeding primary policy limits.

Best for: Manufacturers, distributors, importers, retailers with private-label products, and businesses with significant product exposure.

Contractors Excess Liability

Additional liability limits specifically designed for construction contractors. Often required for large projects, this coverage extends beyond general liability limits to meet contractual requirements and protect against substantial claims from construction operations.

Best for: General contractors, construction companies, specialty trade contractors, and contractors working on large-scale projects.

Professional Liability Excess Coverage

Higher limits for errors and omissions claims exceeding primary professional liability coverage. Essential for service providers, consultants, and professionals who face potential professional liability claims that could exceed standard policy limits.

Best for: Professional service providers, consultants, design professionals, contractors providing professional services, and businesses with E&O exposure.

How Excess Liability Insurance Works in Texas

Excess insurance activates when your primary policy limits are exhausted:

Primary Coverage Pays First: Your underlying primary policy covers claims up to its limits (e.g., $1 million general liability)
Excess Coverage Activates: Once primary limits are exhausted, excess coverage begins paying additional amounts up to excess policy limits
Seamless Coverage: Excess coverage typically follows the same terms as primary coverage, ensuring consistent protection
Higher Limits Available: Excess policies can provide millions in additional coverage, protecting substantial business assets

Excess liability insurance is particularly valuable in Texas, where large jury awards and settlement amounts can easily exceed standard policy limits. A single serious accident, product defect claim, or professional liability lawsuit could result in damages far beyond what primary coverage provides. Excess insurance ensures your business remains protected even in worst-case scenarios.

Unlike umbrella insurance, which may provide broader coverage and fill gaps, excess insurance specifically extends limits of existing coverage. This makes it more cost-effective for businesses that need higher limits but don't require the comprehensive coverage expansion that umbrella policies offer. Excess coverage can be purchased in layers, allowing businesses to build substantial protection through multiple excess policies.

When Texas Businesses Need Excess Liability Coverage

Many Texas businesses require excess liability coverage due to contractual obligations, industry standards, or risk exposure. Construction contractors working on large projects often face contract requirements for excess coverage beyond standard general liability limits. Manufacturers and distributors may need excess product liability coverage to protect against widespread product defect claims.

Businesses with significant assets to protect, high revenue, or operations in high-risk industries should consider excess coverage. Service providers facing professional liability exposure may need excess E&O coverage. Companies with commercial fleets often require excess auto liability coverage. Any business that could face claims exceeding primary policy limits benefits from excess coverage.

Texas businesses should evaluate their risk exposure, contractual requirements, asset values, and industry standards when determining excess coverage needs. Working with an experienced insurance professional helps identify appropriate excess limits and coverage types based on your specific business operations and risk profile.

Benefits of Excess Liability Insurance

Asset Protection

Protects substantial business assets, real estate, and personal assets from claims exceeding primary policy limits, ensuring your financial security even in catastrophic loss scenarios.

Contract Compliance

Meets contractual requirements for higher liability limits often demanded by clients, project owners, landlords, and business partners in Texas.

Cost-Effective Protection

Provides substantial additional coverage at a fraction of the cost of increasing primary policy limits, making high-limit protection affordable for businesses of all sizes.

Flexible Coverage

Can be tailored to specific exposures, purchased in layers, and structured to meet unique business needs and risk profiles.

Business Continuity

Ensures your business can survive catastrophic claims without facing financial ruin, maintaining operations and protecting your ability to continue serving clients.

Competitive Advantage

Demonstrates financial strength and risk management to clients, partners, and stakeholders, enhancing your business reputation and competitive position.

Obtaining Excess Liability Insurance in Texas

Securing appropriate excess liability coverage requires careful evaluation of your risk exposure and coverage needs:

Evaluate Primary Coverage: Review your existing primary policies to understand current limits and identify gaps that excess coverage should address.
Assess Risk Exposure: Consider your industry, operations, contract requirements, asset values, and potential claim scenarios to determine appropriate excess limits.
Review Contractual Requirements: Identify any contracts, leases, or agreements that specify minimum excess coverage requirements.
Select Coverage Type: Choose between following-form excess, stand-alone excess, or specific excess coverage for particular exposures like auto or product liability.
Determine Limits: Calculate appropriate excess limits based on your risk assessment, asset protection needs, and contractual obligations.

Working with an experienced Texas insurance professional ensures you secure appropriate excess coverage that complements your primary policies, meets contractual requirements, and provides comprehensive protection at competitive rates. Excess coverage can often be structured in layers, allowing you to build substantial protection incrementally as your business grows.

Get a Quote

Fill out the form below and we'll get back to you with a personalized quote for Excess Insurance.