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Umbrella Insurance: Beyond the Rain

posted by on Tuesday, January 28, 2014

Excess Liability Insurance (ELI), more commonly known as Umbrella Insurance, is one of the most important types of insurance you or your company can buy. It protects your business and you as a homeowner, from holes or limits in existing policy coverage as well as from financially draining lawsuits.

Umbrella Basics
Umbrella insurance is extra liability insurance that you purchase in addition to your regular insurance policies. As its name implies, umbrella insurance sits “on top of” your other insurance policies like an umbrella, to provide added financial protection in the event that other policies cannot cover the loss.

Who should consider ELI/UMBRELLA?
It used to be that only the very wealthy needed umbrella insurance. But anyone can be sued for any reason at any time, and umbrella insurance provides added protection against losses. If someone falls on your front steps or your tree falls on a neighbor’s house during a storm, they can successfully sue you for damages. Anything that happens on your property or because of your property is fair game and not always covered by traditional homeowners’ insurance. Umbrella policies provide protection in many situations that usual liability policies don’t cover.

Other Benefits of ELI/umbrella Coverage
Ultimately, ELI acts as a sort of dual policy, providing coverage in two ways:
Paying liabilities in excess of existing policy limits
Providing coverage in areas not included with existing policies

The umbrella market is often erratic. Your broker can find you competitive quotes addressing your specific risk categories. To learn more about including Excess Liability/Umbrella If you’d like to learn more, contact us or call 1.800.798.4080 to get a quick quote.

 

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