People nowadays get insurance policies for practically everything. From the basic life insurance to something more specific like flood insurance, they want to protect what’s important to them. However, sometimes these policies don’t cover everything. Usually, insurance policies only cover a range of risk or liability.
But what if something happened to you and your policy does not cover it?
Umbrella insurance is the best answer to that question. This kind of coverage gives extra protection to the insured beyond the limits of their other policies. There are two types of umbrella insurance: personal umbrella insurance and business umbrella insurance. When getting umbrella insurance, one should know the difference between the two kinds.
Business (or commercial) umbrella insurance provides an extra safety blanket to business owners. This kind of umbrella insurance goes beyond the limits expressed in commercial auto liability insurance and commercial general liability insurance.
On the other hand, personal umbrella insurance has the same principle as the first one, but this is an addition to the insured’s life insurance or auto insurance. Medical bills (including therapies) and lost income due to injury are some of the things personal umbrella insurance covers.
Who should get it?
Business owners should get commercial umbrella insurance, but not all of them are advised to get it. Businesses that regularly interact with customers and are open to the public should equip themselves with this kind of insurance.
For the personal umbrella insurance, anyone can get it if they want to fill the gaps in their other policies. These can include people joining high-risk activities or dog owners who are scared that their dogs might bite other people.
How much does it cost?
Business umbrella insurance cost depends on the size of your business. Typically, companies with higher liability exposure can have higher commercial umbrella insurance costs. On the contrary, personal umbrella insurance can cost between $150 and $300 annually for a $1 million liability policy.
By now, you already know what personal and business umbrella insurances are. When choosing what best suits your needs, keep in mind those differences. People should also research and ask professionals when they need more guidance.
No matter what you need, a little safety blanket will not hurt you financially. Obtaining umbrella insurance gives you extra comfort to live your daily life.
At Mauser & Tobin Co., Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (516) 747-0171 or Click Here to request a free quote.
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