Umbrella. Liability. Coverage. Many people have an idea of what this coverage is, but don't know what it specifically covers.
When it rains, you put your rain jacket on right? Think of your rain jacket as a form of liability. You might wear rain boots. You may even wear rain pants. However, sometimes your rain gear isn't enough and you also need to pull out your umbrella for extra protection. That is what umbrella liability coverage does. It provides you with the extra protection you need in case your other liability coverages aren't enough.
There are two types of umbrella coverage, personal and commercial business.
Personal umbrella liability coverage:
-Provides people with more (additional) coverage for any personal liability that they are already covered for. For example, you might only have $300,000 of liability protection on your personal auto policy. To have enough coverage for a $750,000 claim, you would need to have a personal umbrella policy. The umbrella policy increases the amount of liability coverage for your auto, home, boat, or other personal liability exposures.
Commercial business umbrella liability coverage:
-Provides businesses with additional layers of liability insurance to help protect against larger claims. This type of policy goes over, or is added on top of, the limits you purchased in your underlying policies, such as your general liability, business auto or workers compensation.
It's never a bad thing to be well-prepared. But being under-prepared with your insurance can be a costly mistake. Umbrella policies are generally very affordable. Don't rely on your rain gear alone to fully protect you. In today's litigious society, the storms can be fierce, and expensive.
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