Umbrella insurance provides personal coverage that extends beyond car, boat or home insurance. It also covers the cost for legal fees when a claim is brought against your business for offenses including libel, defamation and vandalism. While you may think that you have enough protection with basic policies, umbrella insurance policy is a far-reaching coverage for unprecedented occurrences because it helps ensure maximum security.
It would be best if you had umbrella insurance because it is the closest option for buying full coverage for all claims. In case you’re still wondering about the need for personal umbrella insurance, here are some classes of people that may benefit the most from this policy.
Persons with Valuable Assets
Most policies cover damage and claims for assets like cars, boats, and buildings but exclude coverage for liquid assets such money, coins and bullions, which are kept in the bank. In the instance of a liability suit against a person, liquid assets may also be included, which may result in a massive loss for the respondent if uninsured. An umbrella policy provides coverage for all forms of investment, making it the ideal choice for persons with high net worth.
Recreational Facilities Owner
Recreational facilities like indoor pools pose a degree of risk because of the possibility of drownings and other water-related accidents. Hence, it is advisable to ensure that you are prepared for such occurrences by purchasing an umbrella insurance policy.
Parent or Guardian of a Teenage Driver
Records have shown that teenagers make up a significant percentage of reckless drivers who indulge in speeding, texting and driving or drunk-driving. Guardians or parents will be held liable for damages and legal claims caused by their cars regardless of who was behind the wheel at the time of occurrence.
Persons who drive often have a higher risk of getting into accidents. Hence, it is advisable to purchase an umbrella policy to cover the cost of damages caused by a collision. Accidents may also bring legal charges against the driver. Thankfully, the insurance coverage helps to oversee additional aspects to liability claims such as court fees and legal expenses.
Domestic pets such as dogs and cats are usually friendly and accommodating to guests. However, there may be instances where the animals feel threatened or misinterpret situations and attack your visitor. In such a case, the homeowner is liable for damages caused to the injured party. An umbrella policy covers the medical bills to treat the guest and resolve the matter.
Owner of High-Risk Vehicles
Watercraft, race cars and automobiles are all high-risk vehicles which may cause grievous bodily harm. The owner of the vehicle would be held liable for all damages caused by it even if it happened when someone else was driving. Hence, it is advisable to ask your agent whether your policy covers specific vehicles to prevent colossal liability claims.
If you are a small or medium business owner, umbrella insurance helps to cover the cost of a suit against your business, including libel, defamation, bodily harm, and copyright infringement. The National Association of Insurance Commissioners (NAIC) encourages SMEs to purchase commercial umbrella insurance policies to protect their businesses.
There is no doubt that other policies provide coverage for some of the mentioned claims. However, an umbrella insurance policy has a significantly high limit compared to other offers. Hence, it helps to supplement already existing coverage. If you want to learn more about umbrella insurance policy, contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to assist you with all your coverage needs today.