UNDERSTANDING INSURANCE
For the Bed & Breakfast or Country Inn Innkeeper
Additional Liability
Additional liability increases the amount of liability coverage. It is written as a separate policy and will come into force when your liability policy has been exhausted or used up. An Excess policy can only be used in addition to your Commercial General Liability policy and will only be used once this policy is exhausted. A true Umbrella will come into play over any type of liability policy, for example your Automobile policy as well as your Commercial General Liability policy.
Very Important: Remember, the occurrence limit contained within the Commercial General Liability portion of your policy applies per loss, not per person. If a guest falls down the stairs and you have a $1,000,000 occurrence limit, you have $1,000,000 available for your guests injury (one loss). If you have a fire in your Inn and 13 people are injured, with a $1,000,000 occurrence limit on your policy you only have $1,000,000 which applies collectively to all 13 people: $1,000,000 per loss not $1,000,000 per person.
By purchasing an Umbrella/Excess policy, you increase the aggregate and occurrence limits contained within the Commercial General Liability portion of the policy by the limits of the Umbrella/Excess policy. For instance:
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Package Policy Liability Limits
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With a $1,000,000 Umbrella/Excess Liability Policy
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$1,000,000 occurrence
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$2,000,000 occurrence
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$2,000,000 aggregate
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$3,000,000 aggregate
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