Excess Auto Liability Insurance

Excess Auto Liability Insurance for Excess & Surplus Risks

Excess & Surplus

In today’s complex transportation and commercial auto environment, even the safest businesses face risks that can exceed their primary insurance limits. Rising claim severity, increased roadway congestion, and nuclear verdicts have made Excess Auto Liability insurance an essential part of a well-structured risk management program. At IAT Insurance Group, we support organizations with coverage designed to safeguard their financial stability when unexpected, high-severity auto losses occur.

Why Excess Auto Liability Insurance Matters

Excess Auto liability exposures continue to escalate. According to the National Highway Traffic Safety Administration (NHTSA), the average cost of a fatal motor vehicle crash exceeds $1.7 million in economic losses alone. Additionally, the number of verdicts over $10 million in commercial auto cases, often referred to as “nuclear verdicts”, has risen sharply in recent years (Insurance Information Institute).

For businesses operating fleets, hiring drivers, or transporting goods or passengers, a single large auto claim can surpass primary liability limits. Excess Casualty coverage provides an additional layer of protection, helping organizations maintain operational continuity and financial security after severe or catastrophic losses.

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Excess Liability & Surplus

At IAT, our Excess and Surplus Lines Insurance is crucial for business owners who operate in high-risk industries or have non-standard needs that can’t be covered by traditional markets.

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Why Excess Auto Liability Insurance Matters

Excess Auto liability exposures continue to escalate. According to the National Highway Traffic Safety Administration (NHTSA), the average cost of a fatal motor vehicle crash exceeds $1.7 million in economic losses alone. Additionally, the number of verdicts over $10 million in commercial auto cases, often referred to as “nuclear verdicts”, has risen sharply in recent years (Insurance Information Institute).

For businesses operating fleets, hiring drivers, or transporting goods or passengers, a single large auto claim can surpass primary liability limits. Excess Casualty coverage provides an additional layer of protection, helping organizations maintain operational continuity and financial security after severe or catastrophic losses.

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Who Needs Excess Auto Liability Coverage?

This coverage benefits a broad range of industries, including:

  • Moving & Storage operators
  • Construction and contractor fleets
  • Recycling & waste hauling businesses
  • Manufacturers and distributors with delivery fleets
  • Commercial auto liability for businesses with fleet-based operations

Whether your operation involves transporting goods, deploying vehicles to job sites, or providing specialized hauling services, excess liability coverage helps address high-severity risks that primary insurance may not cover.

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Excess Auto Liability Risks

Businesses with auto exposures face evolving risks such as:

  • High-impact accidents involving heavy or specialized vehicles (e.g., contractor equipment carriers, waste haulers)
  • Driver fatigue and accident exposure during loading/unloading (moving & storage, manufacturing/distribution)
  • Litigation trends and increasing nuclear verdict exposure (affecting commercial auto fleets across industries)
  • Inflation driving up vehicle repair and replacement costs
  • Navigational and routing challenges in urban and industrial areas

Excess Casualty coverage helps address these challenges by providing higher limits and broader financial protection above primary policies.

Frequently Asked Questions

Auto Liability insurance generally covers bodily injury and property damage to others caused by the insured’s vehicle. Excess Auto Liability extends protection when the costs exceed the primary policy’s limits.

Coverage needs vary by industry, fleet size, operations, contractual requirements, and risk appetite. Many businesses seek limits of $5 million to $25 million or more due to increased claim severity.

They are similar, but not identical. Excess Liability typically follows the primary policy’s terms, while Umbrella coverage may include additional protections.

Factors include increased congestion, distracted driving, cargo complexity, driver shortages, and litigation trends — challenges often faced by contractors, manufacturing transport, waste management fleets, and moving operators.

Partner with IAT

As a wholesale broker, partnering with IAT Insurance Group gives you access to a team that understands the evolving challenges of commercial auto exposures and high-severity liability claims. Our expertise in Excess Casualty allows us to help you design tailored Auto Liability solutions that meet the specific needs of fleets, transportation operators, contractors, and businesses with significant vehicle usage.