Umbrella Insurance? What Is It? 
No one would think of owning a car without purchasing basic insurance coverage. In fact, it is usually required by state law. Likewise, your mortgage company will require you to purchase homeowners insurance to protect against catastrophic losses and liability claims before lending you money to purchase a home.
Wise business owners should consider purchasing a personal umbrella policy that increases the limits of their basic auto and homeowners policies. These policies are available for very little additional cost.
Umbrella insurance is extra liability insurance. It is designed to protect you from major claims and lawsuits and as a result it helps protect your assets and your future. It does this in two ways:
- Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies. This protection is designed to kick in when the liability on these other policies has been exhausted.
- Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own.
Umbrella coverage, professional liability and error & omission coverage are also available for business entities and should be considered as part of an overall risk managment and wealth protection strategy. We recommend that you review all your insurance coverage, personal and business, with your insurance professional. This review should occur at least annually or when any major change in ownership or asset sale/purchase occurs in your business.
As always, it is our pleasure to serve you.
Material discussed is meant for general illustration and/or information purposes only and is not to be construed as tax or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary.