Umbrella Insurance Policy
What is an Umbrella Insurance Policy?
An umbrella insurance policy is an insurance policy that covers claims beyond what traditional property and/or liability insurance covers.
How Does an Umbrella Insurance Policy Work?
Businesses also obtain umbrella policies to mitigate any lawsuits or judgments.
For example, let' say that John Doe has liability insurance for his business. The policy covers up to $10,000 of personal injuries if one of John's customers is harmed by, say, falling down the steps in his business.
One day, John has a sale and lots of customers come in. Sure enough, Jane Smith falls down John's stairs and breaks both legs and an arm. The medical bills are well over $200,000.
Because John's policy only covers $10,000 of medical bills, he would be on the hook for the other $190,000. If John has an umbrella policy, however, the $190,000 would likely be covered.
Why Does an Umbrella Insurance Policy Matter?
Most of us realize that auto and proerpty insurance are important, but few people realize how limited that coverage can sometimes be, particularly when someone sues them for damages in a business. In many instances, companies, even small ones, can be sued for tens of millions of dollars.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.