Opening an umbrella keeps you dry while outside in the rain, right? Well, more or less. You could step in a puddle, a passing vehicle could splash you, the wind could send the raindrops at you sideways. An umbrella, in other words, keeps you mostly dry, but it’s not a 100% guarantee. There are plenty of ways you could still get wet.
Similarly, an umbrella insurance policy provides additional personal liability coverage for those with an existing policy, kicking in when the liability coverage of the original, basic policy has been exhausted. It also protects against libel, vandalism, slander, and invasion of privacy. Those who own dangerous items that can cause injury, such as swimming pools, trampolines, or dogs, are wise to consider buying umbrella insurance. Those engaged with others, such as landlords, coaches, and board members, might also buy umbrella insurance.
But despite the inferred universal connotation of the term “umbrella,” an umbrella policy does not protect the policyholder against all types of claims. It does not cover one’s possessions, such as a home or automobile, and has a number of additional exclusions and limitations, such as:
- Intentional Acts: Umbrella insurance won’t cover damages or injuries that you cause intentionally.
- Business-Related Claims: Personal umbrella insurance does not cover business liabilities. If you own a business, you’ll need a commercial umbrella policy for business-related claims.
- Certain Vehicles: Some policies exclude specific types of vehicles, such as aircraft or high-value watercraft, unless you have additional coverage.
- Workers’ Compensation Claims: Claims related to employees or household staff, such as nannies or housekeepers, are not covered by umbrella insurance.
So, while umbrella insurance provides extensive liability protection, it doesn’t cover every scenario. Understanding its exclusions helps you determine if additional coverage is necessary to fully protect yourself. Don’t get wet in the rain. Contact the professionals at Evergreen to learn more about the full picture regarding umbrella insurance.
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Evergreen Insurance provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.