Home
Company Info
Insurance Products
Customer Service
Contact Us
|
| |
Umbrella Liability Insurance
Umbrella is an additional liability policy you can
buy that is designed to cover losses that exceed
the limits of your primary liability policies such as
commercial automobile and the liability portion of
your business owners policy. It provides another
layer of coverage for catastrophic events when the
underlying policy limits are exhausted. The cost of
umbrella insurance is often surprisingly small,
because the underlying policies assume most of
the risk, and umbrella takes over only when the
limits of the primary policy are exhausted.
Liability policies often state that each claim
combines with your other claims paid in any one
policy year to contribute to the maximum limits
available. For example, if your business liability
limit is $1 million, and your insurer paid out
$800,000 on a claim under your business ownerspolicy in February, you might be left for the rest of
the year with only $200,000 in business liability
insurance unless an umbrella policy is in place.
Furthermore, even though your primary policies
probably include defense costs beyond the policy
limits, defense costs are only provided so long as
there is policy coverage available. An umbrella
policy generally picks up defense costs when the
primary policy reaches its limit.
|
|