What is an Umbrella Insurance? • An umbrella insurance is basically a preconceived backup plan for your savings and assets • If you cause or are sued for damages that exceed the liability limits of your concerned primary policy, then umbrella insurance covers any extra costs related to the incident.
What does umbrella insurance cover? • Slander against the business • Legal defense costs • Reputational damage • Auto accidents costs • Product liability • Medical costs for bodily injury • Repair costs of property damages
Primary Policies Required: • General liability insurance • Commercial auto insurance • Employers’ liability • Product liability insurance
What umbrella insurance does not cover • Commercial property insurance: If your office equipment breakdown, umbrella insurance will not cover for the loss. • Errors and omissions insurance • Employment practices liability insurance • An umbrella policy excludes any coverage for punitive damages as a result of intentional harm to another entity. • Claims already covered by primary policies
Excess Liability Insurance vs Umbrella Insurance • Umbrella liability policy provides broader coverage to the underlying plans and increases their limits of multiple policies in case their original limits get exhausted. • An excess liability policy does not offer extra coverage to the underlying plans but adds extra liability limit over existing coverages of the scheduled policy. • The two policies only extend the underlying coverage and do not operate as stand-alone coverages