Types of Insurance for Employment Practices Claims – Excess or Umbrella Coverage

An Orange County Employment Lawyer Discusses Employment Insurance

Orange County employment lawyerAn Orange County employment lawyer explains umbrella and excess insurance coverage in this blog.

Excess Coverage

Excess insurance takes effect when the primary coverage has been used up. It raises the level of available coverage, thus extending the limits of the policy to which it is attached. It covers only those provisions that are covered in the primary policy and the same conditions apply to both.

Umbrella Coverage

As with excess coverage, umbrella coverage provides an employer with a greater level of protection. This, however, is where the similarity ends. While excess insurance increases the level of coverage, umbrella insurance increases the range by covering provisions that are lacking in the primary policy. In other words, excess coverage gives the employer more of what his primary policy already has. Umbrella insurance provides coverage that the employer’s primary policy does not have.

Stand-Alone Purchase

Both umbrella and excess coverage insurance can be purchased separately or in conjunction with a primary insurance policy. The excess and umbrella insurance will issue a pay off as soon as the primary policy has done so.

Primary Insurer’s Duty

When you and your Orange County employment law firm attorney begin a claim against an employer, it is the responsibility of the primary insurer to compensate the defendant-employer against such losses as are incurred in the claim at the outset. This is referred to as providing indemnity and defense. This responsibility holds unless otherwise specified in the policy’s conditions and terms or forbidden under the relevant legal statues.

Seek Answers Today

If you have questions, are in need of representation or would like to learn more, contact Daily Aljian LLP, your Orange County employment lawyer, by calling 949-861-2524. Don’t wait. Call now.

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