Individuals and businesses purchase umbrella insurance to increase liability coverage limits of other policies, such as auto insurance, malpractice insurance, and homeowner’s insurance. In addition to increasing coverage limits, umbrella insurance may also cover specific risks that are not covered in other policies.
Umbrella insurance is used to protect the insured person or company from severe financial damage and having to pay huge legal fees caused by being liable for a catastrophic event. Everyone benefits by having at least a modest amount of umbrella coverage. It helps to protect them from unexpected severe events so that if something goes wrong, they do not lose everything they own.
Talk about umbrella insurance with your insurance agent at Easley Hedrick Insurance & Financial. Our agency serves Richmond, VA and the surrounding area, as well as residents across the state of Virginia.
If there is an insurance claim, the insured must first meet any deductibles in the primary insurance policies that provide coverage for the claim. If the claim then exceeds the policy limits of those insurance policies, then umbrella insurance coverage is used to pay an additional portion of a covered claim up to the limit of the umbrella insurance policy.
For some claims like libel or slander, umbrella coverage may be the only insurance to provide protection. In those cases, umbrella insurance is the first insurance coverage and the only coverage that can pay those types of claims, after any deductible is met.
The policy limits on umbrella insurance are usually a high amount that starts at $1 million and may go up to many millions. It is very common for professionals to have $5 to $10 million in coverage or even higher.
People who live and work in Virginia can be prone to lawsuits. If a claim is successfully made against you for substantial damages, such as one that includes severe injury or the death of a wronged party, the settlement or judgment can be very significant. If you do not have enough umbrella coverage to pay the claim, you may lose everything you own.
To decide what coverage level is appropriate for your circumstances, consider these things:
Umbrella insurance can be tailored to cover specific needs and have variable limits for different types of claims. Work carefully with your agent to discuss any special needs that you may have.
Consult with your insurance agent at Easley Hedrick Insurance & Financial by telephone or by coming to the office in Richmond, VA to get adequate umbrella insurance. You will feel much better when you protect yourself, your family, your business, and your future.