If you’re a contractor, you’ve probably run into this situation:
A client, builder, or property manager asks you for more insurance coverage than your policy provides.
You call your insurance company… and they tell you your General Liability policy is capped at:
- $1,000,000 per occurrence
- $2,000,000 aggregate
So what do you do?
That’s where Excess Insurance comes in.
What Is Excess Insurance?
Excess Insurance is extra liability coverage that sits on top of your existing General Liability policy.
Think of it like a second layer of protection.
If your main policy hits its limit, the excess policy steps in and covers the remaining amount—up to its limit.
Simple Example (How It Works)
Let’s break it down in real numbers:
- Your General Liability policy covers: $1,000,000 per claim
- You add an Excess policy for: $2,000,000
👉 Now your total protection is $3,000,000 per claim
If a claim comes in for $1.5M:
- Your GL policy pays the first $1M
- Your Excess policy pays the remaining $500K
Getting Asked for More Coverage?
This is happening more and more—and it usually means you’re working on better projects.
If you’re not sure what to do, don’t guess.
📞 Call or Text Kevin: 530.320.3617
📧 Kevin@TheContractorsResourceCenter.com
I’ll help you figure out exactly what you need (and what you don’t).
Why Contractors Need Excess Insurance
Today, many clients require contractors to carry higher limits to reduce risk.
You’ll commonly see this with:
- Large residential builders
- Custom home projects
- Property managers
- Commercial jobs
If you don’t meet their insurance requirements, you may not get the job.
Common Coverage Requirements Contractors See
Here are typical limits contractors are being asked for:
- $2M per occurrence / $4M aggregate
- $3M total coverage
- $5M+ for larger or higher-risk projects
Most standard General Liability policies won’t go this high on their own.
Excess vs. Umbrella Insurance (What’s the Difference?)
This is where a lot of contractors get confused.
Excess Insurance
- Increases your current policy limits
- Follows the same coverage rules as your existing policy
- Usually more affordable
Umbrella Insurance
- Adds extra limits and may expand coverage
- Can cover certain gaps not included in your base policy
- More flexible
👉 Simple way to think about it:
- Excess = More of the same coverage
- Umbrella = More coverage + broader protection
How Much Does Excess Insurance Cost?
Pricing depends on:
- Type of work you do
- Your revenue
- Claims history
- How much coverage you need
General ballpark:
- $1M Excess policy: a few hundred to around $1,500/year
- Higher limits: increase gradually
For most contractors, the cost is small compared to the value of landing a larger job.
When Should You Consider Excess Insurance?
You should look at adding Excess coverage if:
- A client requires higher limits
- You’re bidding bigger projects
- You want extra protection from large lawsuits
- You work in higher-risk trades (roofing, concrete, framing, etc.)
Can Your Current Insurance Company Provide It?
Sometimes—but not always.
Many insurance companies:
- Cap their policies at $1M / $2M
- Don’t offer higher limits internally
In those cases, an Excess policy is added through a separate insurance company that sits on top of your existing policy.
Important Tip (Most Contractors Miss This)
Not all Excess policies are the same.
You want to make sure:
- It properly matches your existing coverage
- There are no gaps between policies
- The insurance company is reliable
This is where working with someone who understands contractor insurance makes a big difference.
Final Thoughts
Excess Insurance is one of the easiest ways to:
- Qualify for better jobs
- Meet client requirements
- Protect your business from large claims
👉 And the best part—you don’t need to replace your current policy. You simply add another layer on top.
Need Help Getting the Right Coverage?
At The Contractors Resource Center, we work with contractors every day to:
- Get the exact coverage required for their projects
- Avoid overpaying for unnecessary insurance
- Make sure everything is set up correctly the first time
📞 Call or Text Kevin Directly: 530.320.3617
📧 Email: Kevin@TheContractorsResourceCenter.com
👉 Fast answers. Straightforward advice. No pressure.