Liability Insurance FAQs

What is the purpose of liability insurance?

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• Liability insurance protects you or your business' hard earned money and assets from being taken in a lawsuit sparked by events anywhere in the world!

• If someone slips and falls on your personal or business property or if you hurt a person or damage property anywhere in the world during a technically avoidable scenario there’s a very good chance a lawsuit will be coming your way in the near future

• A slip and fall on your property will lead to a claim on your homeowner policy, where a carrier would pay to defend you in court and ultimately may decide to pay to settle the lawsuit if the event is covered by your policy. Your coverage would max out at the limit shown on your homeowner policy, so you may need an excess liability policy to provide additional coverage to avoid the lawsuit causing an out of pocket payout from you

• We unfortunately live in an extremely litigious society, and a lawsuit can come your way even if you haven’t done anything to deserve it

How much liability insurance do I need?

• This answer is typically tied to your net worth. For example if your home(s), car(s), jewelry, art and other assets total to $4,000,000 in combined value, we would advise you to purchase $4,000,000 in liability coverage. A limit of this size is usually surprisingly affordable (assuming you are not famous, reckless or an irresponsible driver), and can be obtained through your homeowner/condo/renter policy as well as an excess liability or umbrella policy that adds additional coverage on top of what your homeowner/condo policy maxes out at (typically $1,000,000)

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How much liability insurance does my business need?

• This answer is typically tied to your company's annual revenue, but other factors that we would consider are things like your type of business, shipping/deliver exposure, whether or not you have a location that customers visit, whether or not you are building properties or directly manufacturing products, and more. A business's liability needs are slightly trickier to calculate than a persons, but with a little information we will be able to come up with an adequate number for you

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So how does Umbrella or Excess Liability coverage work?

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• Excess Liability coverage is really not too different from standard liability coverage, except that the limits are typically much higher than those offered and it often include coverage on top of multiple policies. For example an excess liability policy for a person or family may provide limits on top of liability limits shown on underlying homeowner, auto, and watercraft policies.  While terms umbrella and excess liability are typically used interchangeably, technically an excess liability policy offers only liability limits on top of an underlying policy or policies. An umbrella policy technically offers excess liability with additional added coverage

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Are there additional specialized liability coverages available for individuals that go beyond normal injury scenarios?

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• Yes, for example voluntary Workers' Compensation coverage for full or part-time employees is available in many states if you have a larger more complex account. Employment Practices Liability Insurance (EPLI) coverage can also be available for those employing domestic employees. As with a commercial EPLI policy, this coverage can help cover lawsuits related to allegations of wrongful termination, discrimination, sexual harassment and more

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I serve on charitable boards, is their any way to supplement the boards' Directors' and Officers' (D&O) coverage?

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• Yes! Depending on what carrier we can negotiate a coverage offering from for you there may be an optional D&O coverage that is purchasable. This coverage would help cover losses that excess the charitable boards' underlying D&O limit. You shouldn't pay out of pocket for lawsuits related to charitable work you do as a leader in your community, and carriers have recognized that this is a need for many potential clients

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What do you need to get me price quotes for liability insurance

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• We really only need a small amount of information about yourself, your family, your home/condo/rental and/or your business in order to obtain liability insurance quotes from one (or more than one) insurance provider. For the quickest turnaround time you can fill out our quick 2-5 minute online quote request form (links directly below) 

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• Alternatively, we can set up a time to talk in person (depending on your location) or have you provide us with your information over the phone (212-495-9172 is our main number) or you can email us at Hayden@NorthImprovement.com. Whatever route you prefer to go is fine with us

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