What types of coverage does umbrella insurance provide?
What is Umbrella Insurance?
Umbrella insurance, also known as an excess liability policy, is a form of liability insurance that is designed to provide individuals with extra protection from claims and lawsuits that can arise from other policies, such as auto and homeowners’ insurance.
What Does Umbrella Insurance Cover?
Umbrella insurance provides you with additional protection for certain types of claims and lawsuits that aren’t covered by your other policies, such as:
- Bodily injury: Umbrella insurance can cover costs related to medical bills and lost wages that may arise from a liability claim.
- Property damage: It can also provide coverage for damages to property or vehicles caused by an event other than an accident.
- Libel and slander: It provides coverage for damages incurred due to false remarks or statements.
- Protection of assets: It can provide coverage for assets such as homes, cars, and other property that may be at risk.
- Legal expenses: Umbrella insurance can provide coverage for legal expenses that may arise from a liability claim.
Who Needs Umbrella Insurance?
Umbrella insurance is generally recommended for those who have assets to protect and who have greater liabilities than what is covered by their existing policies. It is also beneficial for those who are at a greater risk of being legally liable for an accident, such as business owners, landlords, and those who may have a higher-than-average risk of being sued.
In addition, umbrella insurance can help protect against claims that may be excluded from other policies, such as libel and slander. It can also help to offset high medical or legal fees that may arise from a liability claim.
Conclusion
Umbrella insurance is a type of liability insurance that is designed to provide individuals with additional protection from claims and lawsuits that exceed their other policies’ limits. It can be beneficial for those who have assets to protect and those who may be at a greater risk of being sued. It can also help to offset high medical and legal expenses related to a liability claim.