Best Insurance Group, LLC Blog
Insurance helps us with uncertainties that life could bring. If you're already covered with life, health, home insurance, and others, great for you! But what if your expenses exceed what your insurance policy covers? What if you're liable for someone else's damage and your insurance doesn't cover it? That's when umbrella insurance comes in.
Things to Know About Umbrella Insurance
Umbrella insurance offers supplemental liability coverage. It's also known as excess liability insurance because it's extra insurance on top of your other insurance policies.
Let's say your policy covers $300,000 of liability, and you're liable for $600,000. If you have umbrella insurance that includes that incident in your policy, it will shoulder the $300,000.
Umbrella insurance covers you in incidents where you can be liable, such as:
Who Needs Umbrella Insurance?
The majority of state laws do not mandate umbrella insurance. It's optional insurance, but it can save you from troubles in case of an unwanted event. Here is a list of instances to determine who needs umbrella insurance:
If You Have Assets You Want to Protect
If you are responsible for a car accident that injures a group of people, it may cost you a million dollars. You have to pay for the remaining expenses if your auto insurance covers less than that amount.
If you don't have enough cash to shoulder that expense, they have an option to liquidate your assets, like your house and car. To avoid losing your significant assets, you need umbrella insurance.
To Avoid Long Term Financial Debt
Aside from your assets, your future potential income can also be at risk if you're found liable for tragedies. The judge can require you to pay a percentage of your future income to the plaintiff until you're fully paid.
To Protect Your Business
Owning a business carries risks for your employees, clients, and business partners. Your business causes damage to the mentioned parties; that's why umbrella insurance can help you protect your business.
Umbrella insurance protects you from severe accidents and other events that your other insurance does not cover. It provides an additional layer to protect yourself.
At Best Insurance Group, LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (970) 674-5000 . You can also request a free quote by CLICKING HERE.