Property & Casualty White Papers

Excess liability insurance (ELI), more commonly known as umbrella insurance, is one of the most important types of insurance your company can buy.

It protects your business from holes or limits in existing policy coverage as well as from financially draining lawsuits. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from the types of claims that could close your business.

No matter what industry you’re in, chances are your organization will, at some point, rely on the help of a third party to fulfill certain business needs. Regardless of who you work with, business arrangements with contractors and vendors can open you up to a number of risks—risks that need to be accounted for through insurance.

However, when accounting for risks related to contracted work, securing your own insurance is not always enough. It’s critical that your partners are covered as well. This is particularly important when you consider that, following an incident involving a contractor or vendor, your business could be the one held liable for any damages that occur. To protect against this sort of risk, many organizations turn to certificates of insurance (COIs).