An Umbrella Policy is Full Coverage Insurance
Liability is a big buzzword these days, and there are very few other words that make business people cringe and fearful at the same time. As the world seemingly gets more and more litigious, liability takes on a whole new meaning. These days, there is no predicting what kind of lawsuits will be filed and the amount of money a judge will deem appropriate as a reward for that lawsuit. Because of this, umbrella insurance has become much more common than it has been in the past. Sometimes it is referred to as “Full Coverage Insurance“.
There was a time when umbrella insurance policies were only a luxury of the well-to-do, but that is not quite the story these days. In fact, it has become a norm for organizations, Small Businesses, corporations, and other associations to take out their own individual umbrella insurance policies to fill in any gaps left by other insurance policies.
In short, an umbrella insurance policy is just like a normal insurance policy- in that it protects businesses and individuals from risk- but, it has a much higher liability payout limit. Most regular insurance policies will only agree to cover a person’s liability- also known as risk- up to a certain point, but an umbrella insurance policy lifts the ceiling on that limit. The other defining characteristic of an umbrella insurance policy is that it will cover all types of insurance, from car insurance to home insurance and beyond.
An umbrella insurance policy will add a relatively small additional cost to a normal insurance policy, but- if a person ever finds themselves in a costly litigious situation- it could end up saving you a boatload of money. Some studies done by various insurance companies and professionals have concluded that an umbrella insurance policy can end up saving a person anywhere from $1 million to $5 million if that person does indeed have to go to [Read more…] about The Role Of an Umbrella Insurance Policy In Your Organization