Umbrella Insurance

UMBRELLA Insurance Policy

Insurance of any type is going to be important financial security when it comes to the common accidents and injuries that many will experience throughout their lifetime. From commercial policies for a growing business or coverage for one’s home, it is important for all parties to ensure that their own finances will be protected in the event of medical bills, legal fees, out-of-trial expenses, repaired property, or replaced property. This often includes umbrella insurance, one vital form of coverage that may be the perfect add-on for a company, family, couple, or single individual.

What sets an umbrella policy apart from other forms of coverage is the fact that it will be used as an additional layer of protection, not as an alternative to other policies. Over the years, someone may find themselves with auto insurance for their daily driver, homeowners insurance, health insurance, or even travelers insurance, but the coverage offered by these policies may not be enough in certain scenarios. Umbrella policies will immediately become active after other forms of coverage have been exhausted. This type of coverage may also be used in more unique situations when there are gaps in one’s coverage.

While umbrella policies can be very affordable, they can also be much more complicated when it comes to where coverage will extend. For a family or couple, a common situation in which an umbrella policy becomes active may include accidents in rented RVs, vehicles, or boats. Umbrella insurance may also be used for serious injuries while on vacation or if a natural disaster has caused overwhelming damage to one’s property and the homeowner’s insurance has been used to the limit.

When applied to a business, an umbrella policy could be the deciding factor when it comes to liability lawsuits. If an employee or client levels a civil case against a company, legal fees can quickly move past $100,000 while damages will often exceed $1 million. Once the business owner’s policy has been exhausted for liability cases, the umbrella policy will often extend to $1 million or more to cover awarded damages or payments for an out-of-court settlement.