Excess Insurance in Orange County
When you're running a business in Orange County, protecting your assets is essential, but sometimes, your primary insurance policies might not be enough. That’s where excess insurance comes in. Also known as excess liability insurance, this type of coverage offers an extra layer of protection, kicking in when your underlying liability policies reach their limit.
Whether you're a contractor in Anaheim, a restaurateur in Santa Ana, or a business owner in Irvine, excess insurance in Orange County can help protect your financial future against large and unexpected claims. In this guide, we'll explain what excess insurance is, why businesses in Orange County need it, and how you can secure the right policy for your needs.
What Is Excess Insurance?
Excess insurance is a policy that provides additional coverage once the limits of your primary insurance (such as general liability, commercial auto, or employer’s liability) have been exhausted. It doesn't replace your existing policies—it supports them.
Excess insurance in Orange County typically applies to:
General Liability Insurance
Commercial Auto Insurance
Employer’s Liability Insurance
Professional Liability Insurance
Umbrella policies with complex structures
This coverage is crucial when a claim exceeds your standard policy limits. For example, if your general liability insurance covers up to $1 million, and you face a $2 million lawsuit, your excess insurance could cover the remaining $1 million. Without it, that additional cost would come directly out of your business’s finances.
Why Do You Need Excess Insurance in Orange County?
Orange County is home to a thriving business community, but with that success comes risk. Here’s why having excess insurance in Orange County is a smart move:
1. Protection from High-Dollar Lawsuits Legal claims can be unpredictable. One major lawsuit or liability claim could exceed your standard insurance limits. Excess liability insurance in Orange County ensures your business won’t have to absorb the extra costs out of pocket. Even a single personal injury claim could involve millions in medical fees and legal expenses.
2. Contractual Requirements Many contracts, especially in construction or professional services, require businesses to carry a certain amount of liability coverage. In some cases, excess insurance is the only way to meet those thresholds. Government contracts and enterprise-level clients often stipulate minimum liability limits well above standard coverage.
3. Business Continuity and Peace of Mind Excess insurance coverage in Orange County offers peace of mind by helping to cover costs beyond your base policy, allowing you to focus on running your business. In times of crisis, knowing you have a financial buffer lets you make decisions with confidence instead of panic.
4. Risk Mitigation in a High-Cost Market Orange County is an affluent area, and settlements or jury awards can be significantly higher than the national average. Without excess coverage, the high cost of a single legal case could cripple even a profitable business.
Who Needs Excess Insurance in Orange County?
Any business exposed to liability risks should consider excess insurance. This includes:
Construction companies working on commercial or residential projects
Architects and engineers managing complex plans
Restaurants and hospitality businesses serving the public daily
Medical and legal professionals offering expert services
Manufacturers and distributors shipping goods regionally or nationwide
Tech companies working under service-level agreements
Suppose your business interacts with the public, manages employees, handles client assets, or works on large-scale projects. In that case, excess liability insurance in Orange County is a smart—and often necessary—investment.
How Excess Insurance Works with Your Existing Coverage
Excess insurance doesn’t replace your underlying coverage. Instead, it sits on top of it. Once the limits of your general liability or another base policy are reached, excess insurance steps in.
For example:
General Liability Policy: $1,000,000
Excess Insurance Policy: $2,000,000
Total Coverage: $3,000,000
This structure gives you greater financial protection if a claim or lawsuit is larger than expected.
It’s also important to note that excess insurance can apply to more than one type of underlying policy. That means a single excess policy could provide support for general liability, auto, and employer’s liability policies.
What’s the Difference Between Excess Insurance and Umbrella Insurance?
While they sound similar, excess insurance and umbrella insurance are not the same. Excess insurance strictly follows the terms of the underlying policy and only applies when that base coverage is maxed out. Umbrella insurance, on the other hand, may broaden coverage and include areas not covered by underlying policies.
If you’re not sure which one you need, our team at Brashears & Newendorp can help evaluate your risk and guide you toward the most effective solution.
How Much Excess Insurance Coverage Should You Have?
There’s no one-size-fits-all answer. Your coverage limits should be based on:
The size and type of your business
The risks involved in your industry
Contractual obligations with clients or vendors
The value of your business assets
Your level of exposure to public liability or large-scale operations
An experienced insurance advisor can review your current liability coverage and help determine how much additional protection is appropriate.
Get Excess Insurance in Orange County with Brashears & Newendorp
At Brashears & Newendorp, we understand the unique challenges that Orange County businesses face. Our team works with you to assess your risk exposure and recommend the right level of excess liability coverage to suit your needs and budget.
Whether you're managing a growing company or fulfilling a contract that requires high liability limits, we’ll ensure you have the right protection.
Contact us to learn more about how excess insurance in Orange County can help protect your business. Let us be your partner in safeguarding what you’ve built.