An umbrella liability insurance policy can supplement your CGL policy. The umbrella policy provides additional coverage in the areas that are not covered in the CGL policy. This type of insurance takes effect once a certain deductible or self-insured retention level is met. Umbrella insurance coverage can be customized to meet the needs of your business.

Umbrella Insurance: Your Shield Against the Unexpected

Umbrella insurance, often referred to as excess liability insurance, provides additional liability coverage beyond what's offered by your primary policies, such as auto, homeowners, and renters insurance. It acts as an extra layer of protection, safeguarding your assets in the event of a significant lawsuit or claim.

Why Do You Need Umbrella Insurance?

• Enhanced Coverage: Umbrella insurance provides broader coverage, extending beyond the limits of your primary policies.
• Legal Defense Costs: It covers legal defense costs, which can be substantial, especially in complex lawsuits.
• Peace of Mind: Knowing you have additional coverage can alleviate financial stress and provide peace of mind.

How Does Umbrella Insurance Work?

When a claim exceeds the limits of your primary policies, your umbrella policy kicks in to cover the excess amount. For example, if you're sued for $1 million and your underlying policies only cover $500,000, your umbrella policy would cover the remaining $500,000.

Who Needs Umbrella Insurance?

While anyone can benefit from umbrella insurance, it's particularly important for:

• High-Net-Worth Individuals: Those with significant assets, such as homes, investments, and businesses.
• Professionals: Doctors, lawyers, and other professionals who may face malpractice claims.
• Parents of Teen Drivers: To protect against liability claims arising from accidents involving teenage drivers.
• Business Owners: To protect their business assets from lawsuits.

Key Considerations When Choosing Umbrella Insurance:

• Coverage Limits: Choose a policy with adequate coverage limits to protect your assets.
• Premium Costs: Consider the cost of the policy and weigh it against the potential benefits.
• Deductible: Understand the deductible amount and how it affects your out-of-pocket costs.
• Exclusions: Be aware of any exclusions or limitations in the policy.

By investing in umbrella insurance, you can safeguard your financial future and protect your hard-earned assets. It's a wise decision for anyone who wants to minimize their risk and maximize their peace of mind.