Insurance policies often have existing restrictions. There are areas that may not be covered by these policies. An individual may choose to purchase umbrella insurance as an additional measure to cover these limitations. Umbrella insurance may provide coverage for certain litigation, personal liability, property damage, or injury.

Is it worth getting umbrella coverage?

It is worth taking out umbrella insurance if you have significant assets. If you have more than $500,000 in assets, purchasing umbrella insurance is a good idea. There is a chance that your liability insurance under policies such as homeowners and auto insurance may not cover events and/or situations such as a dog bite, accidental injury to another person, or a car accident. Umbrella insurance protects existing assets as well as future assets. 

Umbrella insurance vs. liability insurance

Umbrella insurance provides increased liability coverage beyond the limitations of an underlying policy. Liability insurance covers the limits of a primary policy.

Can I get umbrella insurance without having car insurance?

Even if you do not drive a car, you may qualify for umbrella insurance as long as you have either renters’ or homeowners’ insurance.

Does umbrella insurance cover professional liability?

Malpractice insurance, also known as errors and omissions insurance or professional liability insurance, may cover lawsuits related to professional errors. This can include things like missed deadlines or services not rendered.

Umbrella insurance is an option to cover areas that may not be covered by professional liability insurance. Business Umbrella policies are designed to supplement existing business liability insurance policies and cannot be purchased as a stand-alone policy.

It’s also important to understand how terms like self-insured retention work within umbrella policies, as they can affect when coverage begins and what you’re expected to pay out of pocket.

Talk to an expert at Premier Group Insurance serving Lakewood, CO to find out if umbrella insurance is the right option for you.