Umbrella Liability Insurance: How It Works & What It Covers

Share this article
Last updated on: July 15, 2021
Umbrella Liability Insurance

When it rains, it pours—and you’d better grab an umbrella. The same can be said for obtaining umbrella insurance.

What is an umbrella policy? Good question!

Umbrella liability insurance policy is exactly what the name itself implies—an extension, or added layer of protection, in the event your standard insurance doesn’t cover all of your costs.

If you’re not sure exactly what this type of coverage entails, or want to determine whether or not you’re a good candidate for an umbrella policy, let’s break down the basics.

What is umbrella policy insurance?

Umbrella insurance is an extension of standard commercial coverage policies.

  • Simply put, an umbrella policy is a business owner’s best friend when an unfortunate event occurs.
  • Although most commercial insurance policies do provide coverage against an array of costly circumstances, they don’t always offer enough—there are limits, after all.
  • An umbrella policy serves as invaluable “gap” coverage, bridging the difference between the costs that a standard policy (such as a general liability or commercial auto policy, for example) covers, and the total amount actually needed.
  • Examples of situations in which umbrella insurance can come in handy:
    • Personal injury lawsuits
    • Property damage
    • Medical expenses for injuries
    • Car accident liability
  • Let’s consider a possible scenario—you’re a business owner, and an employee makes a mistake or causes an injury/property damage while on the job.
    • As the sole proprietor, you’re potentially liable for paying an exorbitant amount of damages, in addition to racking up legal fees and charges for the duration of the proceedings.
    • Although your general liability policy may provide some support, if not all costs are covered, the remaining amount may have to come out of your personal pocket—unless you have an umbrella insurance policy in place!
    • This coverage steps in and picks up where your other coverage left off, so you’re not left in the lurch, diving further into debt.

Should I buy an umbrella insurance policy?

Are you concerned with protecting your assets and even future earnings from potentially devastating lawsuits or other legal disputes?

  • If so, then obtaining the proper umbrella insurance coverage is crucial to your financial well-being.
  • Keeping your commercial and personal finances as secure as possible is of utmost importance, and adding a layer of extra protection with umbrella insurance coverage is well-worth the investment.
  • While it’s true that you’ll never be able to control the actions of others, you can control how prepared you are for the unexpected—and, as the old expression goes, you should always expect the unexpected.

How to buy umbrella insurance

Purchasing the appropriate umbrella insurance policy is a breeze when you connect with one of the highly-skilled, knowledgeable independent agents at Pennsylvania’s own Alchemy Insurance Agency.

  • Instead of spending all of your free time shopping around to get quotes from several different providers, Alchemy does the legwork for you—simply tapping into their network of all the top carriers for a quick, one-stop quote.
  • Alchemy’s agents will review all of your options with you, starting by assessing what coverage you have in place currently, in order to best determine the right match in providers for your commercial coverage needs.
  • You can easily schedule a convenient call with an Alchemy agent to chat about enrolling in a policy with the lowest liability umbrella rate around.

Are you ready to enroll in unbeatable umbrella insurance coverage to properly protect your personal and professional finances? Look no further than Alchemy Insurance Agency, Pennsylvania’s premier provider.

For over 30 years, the independent agents at Alchemy have worked tirelessly to connect individuals, families, and businesses alike with the insurance brands and providers that best suit their coverage needs.

Visit https://alchemyinsurance.com/ today and instantly connect with the top experts in the insurance industry

Share this article