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What is Umbrella Insurance?

(via the Trusted choice website)

Umbrella Insurance Policies Provide Extra Protection.

A rain umbrella protects you from getting wet, but doesn’t stop the raindrops from falling. Umbrella liability insurance is similar in that it cannot prevent accidents or mishaps, but can make those things less devastating financially.

Your primary insurance coverage, like your homeowners and auto policies, includes liability coverage up to a certain limit. Liability is your legal responsibility to pay for damage to a person or to a person’s property. An umbrella policy increases your liability coverage substantially—more types of claims are covered and at a higher limit.

Who Can Benefit from Umbrella Insurance?

  • Anyone with assets to protect
  • Everyone who drives a vehicle, including a car, motorcycle, boat or ATV
  • Everyone who owns or rents a home
  • Anyone that sits on a board, eg: school, town, business, charity

What Does Umbrella Insurance Cover?

A personal umbrella insurance policy provides additional protection by increasing coverage for liability in two ways:

  • Increases the dollar limit of liability coverage for primary policies
    Example: Assume the coverage limit on the liability portion of your auto insurance totals $300,000. If you purchase an umbrella policy of $1 million, and you cause an accident that exceeds your the $300,000 limit on your auto policy, your umbrella insurance can cover the remainder, up to $1 million dollars (a total of $1.3 million total liability coverage, in this case)
  • Covers claims excluded by primary policies
    Example: Typical liability policies may not cover damage claims resulting from false arrest, libel, slander, or defamation of character. If you are held liable for damages caused by these types of claims, the umbrella policy can help you cover costs.

The $300,000 liability limit in the prior examples may seem like a lot of coverage in the abstract, but can easily be exceeded in serious accidents.


Commercial Umbrella Insurance

 If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.

 The rising costs of lawsuits and judgments are important for today's business owner to consider. Catastrophic liability losses can happen to any business at any time, and a commercial umbrella policy protects you when those losses exceed your basic liability coverage. The time and effort you have taken to build your business is too important for it to disappear after one unforeseen event.

Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, worldwide presence, significant public exposure.  

 

Talk to Brewer Insurance Services today about your business operations and we can advise you what kind of liability coverage you need to protect yourself and your company. Just give us a call at 919-658-8585 and we’ll help make sure you’re covered.