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What is Umbrella Insurance and Do I Need it?

Julie and Jason have an umbrella!

Julie and Jason have an umbrella!

Q.  What is Umbrella Insurance and do I need it?

A.  Liability Umbrella policies are incredibly valuable and affordable protection needed by individuals and businesses, alike.  Your primary policies – home/car/boat/business owner’s/worker’s compensation/commercial automobile/etc. – provide an initial layer of liability protection.  This primary coverage is often maxed out at $300,000 – $500,000 for individuals and $1,000,000 for businesses.  Umbrellas can come with many different coverage limits, but the most common limits are $1 million, $2 million, and $5 million.  Insurance is designed not only to protect your current assets, but it also aims to protect your future earning potential against wage garnishments and judgments that a major claim may give rise to.  Umbrellas extend your liability protection beyond your primary coverage.  Simply put, someone with $500,000 primary liability and a $1 million umbrella effectively has $1.5 million in protection (within the bounds of the policies involved).  Umbrellas can sometimes even provide additional coverage that your primary insurance does not.

If you feel like you might need some extra protections in place and want to explore your options, submit your free quote now or call today to discuss your options.