When dealing with certain things; such as, legal issues and insurance policies, it is easy to get confused because of all the specifics and the room for misunderstanding. Especially, when it comes to supplemental insurance policies. Throughout the next paragraphs we will be addressing three main points you need to know about umbrella insurance; one of the most common additional liability coverage policies that people purchase along with their main insurance policy. Here it goes:
Umbrella Insurance Doesn’t Offer Complete Protection
While it is known to be quite an inclusive type of supplementary liability insurance policy, umbrella insurance doesn’t cover certain things. First of all, dog bites. The policy covers most dog bites, however, there are certain dog breeds that do not fall under the policy’s umbrella; pun intended. So, what you need to do is go over this information with your insurance provider. Not to mention, umbrella insurance does not cover certain types of lawsuits.
If you end up getting involved in a lawsuit because of something that you have done with the intent of harm; sexual harassment, DUI consequences, and such acts, your policy won’t be able to protect you. It is important that you don’t generalize when dealing with items as sensitive as insurance policies; go through the terms and conditions and make sure you understand everything before purchase.
Who Does It Benefit the Most?
One major advantage of having umbrella insurance in addition to your primary policy is the legal coverage it provides. Meaning, it can take care of your legal fees, as well as, some types of lawsuits. Thus, making it more beneficial for some more than others, according to one article explaining umbrella insurance coverage, it encompasses people who, “parent-teen drivers, spend a lot of time on the road, own dogs, or even those who have swimming pools.” In other words, if your life is one where you are particularly vulnerable to lawsuits, it is advisable that you consider investing in umbrella insurance.
Umbrella Insurance Covers Professional and Personal Liabilities
Whether you are a trading business owner, a medical professional, or even an investor, it doesn’t matter. When buying umbrella insurance, you simply need to specify whether you want it for professional or personal purposes since both are different. Needless to say, a person and their business are two separate entities in the eyes of the law. In addition to that, the professional policy covers aspects different from the ones covered by a regular personal umbrella policy.
So, to sum it all up, most people have the misconception that umbrella insurance acts like an all-powerful umbrella, covering everything; while, in fact, it is more like an actual umbrella; it can only cover a person’s immediate area. Another point is that some people can benefit from it more than others; if you’re one of them, you should take advantage of it, if not then you need to be more well informed of what your options may be. Finally, if you are a business owner, you can also benefit from additional financial security by purchasing a professional insurance policy.