Do You Need Umbrella Insurance?
(re-post from safeco.com, click the title to go to original blog post)
Umbrella Coverage Explained
One of the most certain things in life is, certainly, uncertainty. Your dog could bite the neighbor’s kid. Your teen driver could hit a cyclist. A guest could fall down your stairs. A rainy morning commute on worn-out tires could result in a multi-car accident. And you could be held liable to others for the cost of damages – injuries, property destruction, emotional distress, lost wages and more.
Good thing you have insurance. But, wait, your policy covers $300,000 of liability, and, in a lawsuit, you’re judged liable for $1 million. That leaves $700,000 left to pay. How will you cover it?
If you have umbrella insurance and your policy covers the incident, the additional $700,000 will come from your policy. If not, it will come from the assets you have now, such as your home and savings, and from future assets, such as your wages or inheritance.
The fact is, it only takes one serious accident and a resulting lawsuit to put everything you own – and will own – at risk. And it only takes one umbrella policy to help protect it all.
Here are a few things you should know about umbrella insurance:
- Personal umbrella policies typically offer $1, $2, $3, $4 or $5 million of liability coverage. Consider your net worth when choosing your coverage –you could be sued for everything you have.
- An umbrella policy is not a stand-alone policy. Your insurance carrier will typically require you to meet certain qualifications, such as having an auto policy with a certain level of liability coverage, in order to purchase umbrella insurance.
- Even when you have umbrella insurance, your car or home insurance is your first line of defense. For example, if you are liable for $2 million in a car accident and your auto insurance covers $500,000 of liability, your auto policy covers the first $500,000. Your umbrella policy covers the remaining $1.5 million, assuming your policy covers the incident and that you purchased that much coverage. If you are liable for $250,000 in an accident on your property and your homeowners insurance covers $300,000, your umbrella policy won’t be needed.
- If you insure a motorcycle, ATV, golf cart, snowmobile, motorhome or watercraft, your umbrella policy may provide additional liability coverage on top of those policies as well. Be sure to check with your carrier to confirm your coverage on these types of vehicles.
- A single umbrella policy typically covers all of your family members who are residents of your household.
Essentially, an umbrella policy gives you excess liability coverage on top of what your other policies provide. If you’re at fault for a serious accident, you’ll need it.
Umbrella insurance also gives you liability coverage in instances where other policies don’t. Examples include driving in a foreign country or renting a boat.
If you’re curious about how umbrella insurance might play a role in protecting the life you’ve built or plan to build, talk to your insurance carrier or to your local Safeco agent.
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. Call Brewer Insurance Services, Inc. at 919-658-8585 or email us at firstname.lastname@example.org today about a commercial umbrella insurance policy.
North Carolina - What you need to know about commercial umbrella insurance
Commercial Umbrella helps you protect your assets by providing liability limits above and beyond your other policies. In some cases, it even broadens your protection. Due to the unpredictable nature of jury awards Brewer Insurance recommends that your business insurance program include this coverage.
What is Excess Liability Coverage?
This coverage provides extra liability limits over an Umbrella policy. This coverage typically follows the terms of the first underlying insurance policy.
Who needs Excess Liability Coverage?
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.