The Purpose of Umbrella Insurance
Umbrella insurance makes it possible to have additional liability coverage. It covers you in case you’re sued for an amount higher than what your regular policy covers. This type of policy works in conjunction with your homeowner’s, auto or boat insurance policies. It provides additional liability, and does not pay for any other expenses.
Anyone can get an umbrella policy, but business owners are more likely to need it. If you own a business and someone gets injured, then they can sue you. If you lose the case, then you’re responsible for the damages. It’s possible that your insurance won’t be enough to cover all of what you owe. But with umbrella insurance, you’ll have the additional coverage to pay the remaining balance.
Without the umbrella policy, you would be liable for paying the amount not covered by your insurance. Personal injury lawsuits can cost millions of dollars, so umbrella policies seem like a smart choice. An umbrella policy for $1 to $2 million dollars generally costs less than $400 per year.
An umbrella policy can be beneficial for a business, but they can also be good additions to your home or automobile policies. Any insurance that has liability can work with an umbrella policy. If you have assets you want to protect, then additional liability might be worth it. Consider your situation before deciding if coverage is right for you.