7 Most Important Liability Claims that Require Umbrella Insurance Policy
It is possible that your primary insurance might fail to protect you to the fullest extent. It could be disastrous if your home, family or business is sued for a significant liability damage. Luckily, an Umbrella insurance policy can provide you coverage where traditional policies fail.
It is one of the most versatile policies. It can provide coverage in a circumstance which is excluded in primary insurance. Also it could provide coverage that goes beyond the limits set by a primary insurance.
Following are some of the most important claims that fall under the purview of this insurance policy;
1. Costs for Legal Defense
Usually, you have to pay the lawyer fees and various processing charges upon being sued. Such costs can reach up to hundreds of thousands of dollars for a single trial. Umbrella insurance can help cover such costs for your trial.
2. Teenage Driving
It is better to have an umbrella insurance if you have a teen driver on your auto policy. You are required to hold the auto policy by law anyway. However, it might not be enough for full coverage in case of a serious accident. The additional protection is necessary because teen drivers are statistically more prone to getting in an accident. In other words, they have a high-risk liability. This is also the reason the premiums of insurance policy are automatically raised for a teen driver.
3. Inebriated Driving
Drunk driving is very dangerous, that is a fact. Let us suppose, you invite friends over for a party and one of them gets drunk. The drunk individuals decide to drive back home in that inebriated state and causes an accident. Legally, you could be held partially responsible for that liability. Such cases of indirect liability could be very expensive and inconvenient. Umbrella insurance policy could provide a boon in such cases.
4. Pet Liabilities
It is possible for your pet animal to lose control and harm someone with an injury. You are held responsible for paying the medical expenses, lost wages and even coverage for pain and suffering. You could receive coverage through your homeowner’s insurance if it covered such a scenario. Although, if it does not Umbrella insurance would provide the protection.
5. Homeowners Liability
A homeowner’s policy provides necessary coverage for a visitor getting injured in your house. It is possible for your neighbor’s car to get crushed under a falling tree from your property. Someone might fall off a poorly placed railing and injure themselves. all such cases would fall under homeowner’s policy.
However, this policy might fall short if the liability is great enough. Umbrella insurance provides additional protection to cover this deficit.
6. Frivolous Litigation
Umbrella insurance is one of the only policies which provides protection against cases of frivolous litigations. This includes the cases of false arrest, wrongful imprisonment, defamation, eviction and malicious prosecution.
7. Pain & Suffering
A person might suffer from psychological stress resulting from an incident. In such cases, you are forced to pay for the “pain and suffering” of the victim. This is one of the costliest liabilities. In some instances, it can rise to millions of dollars. Umbrella insurance policy has minimum limit of $1 Million, for such cases. Therefore, it can provide ample protection.
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4) What Should You Consider When Purchasing Umbrella Insurance Policy?
Protect Your Assets with Umbrella Insurance Policy
SG Financial Inc. can provide you with an umbrella insurance policy at a very low cost. It can protect you from any claims that might destroy all you have built or inherited.