Personal Umbrella Insurance
What Is It?
Umbrella insurance coverage is additional liability coverage beyond your standard policies. It provides extra coverage in the event of large lawsuits and is designed to protect your assets. Umbrella policies can provide extra liability limits ranging from $1 million to $10 million. However for larger corporations that require more coverage there may be specialty markets that can offer more coverage options.
How Much Coverage Is Needed?
Umbrella policies can be beneficial to an individual or a company of any size. As an individual you may feel the need to carry additional liability coverage due to some personal exposures you may have. For example, an individual may own several properties under their name and or small business ventures. Umbrella coverage would provide additional liability limits over the standard policy limits that are carried and up to the umbrella policy limit. Unless stated on the umbrella policy as being a follow form policy ( meaning it will only cover liability claims that the underlying policies, such as the homeowners or auto policy would cover) most standard umbrella policies will also pick up coverages that the underlying policies would not cover. As a company it is very important to cover you assets with an umbrella policy. As a business you are at risk more to liability claims due to the exposures associated with running a business, big or small. Umbrella policies for businesses can also be follow form. This is a very important question to ask you agent as there may be a liability exposures you are not insured for that could not be covered resulting in an out of pocket loss. Umbrella policies also have deductible options, the higher the deductible the lower the premium.