Commercial vs. Personal Umbrella Insurance

a person using a laptop with an umbrella on the screen
Commercial vs. Personal Umbrella Insurance

Protecting your family and belongings is a top priority, which is why many people choose to enroll in personal umbrella insurance. This type of insurance is designed to add extra liability over and above another insurance policy, such as auto, or homeowners insurance.

Personal umbrella insurance is meant to help protect you and your family from potentially devastating liability claims or judgments. This type of insurance will come into play when your homeowners or auto insurance liability limits have been reached.

For example, if you’re in a car accident that injures the other driver, and are at fault, your regular auto insurance may cover the other driver up to the selected limit. What happens if that limit is not enough to cover the driver’s remaining bills? If severe injuries take place, you may be legally responsible for damages beyond what your car insurance policy covers. If the driver then decides to sue you because of lost time at work, or other reasons, your personal assets could be at stake.

This is where your personal umbrella policy comes into play. A personal umbrella policy can help you cover the additional costs when your standard insurance policy just isn’t enough! An umbrella policy will provide you with the additional coverage needed so you don’t get stuck trying to be the remaining balance, which could be astronomical. Umbrella policies are often offered in million-dollar increments, from $1 million to $5 million.

What is Not Covered?

Contact your local Staples Agency agent for a detailed account of what your personal umbrella policies do and do not cover, so you can then determine whether having additional policies make sense for you and your family.

  1. Personal Property: If you cause damage to your own property, your personal umbrella policy generally will not cover that. If you cause damage to someone else’s property, your personal umbrella policy will cover, after the underlying policy limits have been exhausted.
  2. Business Losses: Any losses that are related to the operation of your business, or your business’s property, are generally not covered by a personal umbrella policy. This applies even if the business is home-based. Personal umbrella insurance does not cover other business-related liabilities such as malpractice lawsuits.
  3. Criminal/ Intentional Actions: A personal umbrella policy will not protect you from the consequences of your own intentional actions or illegal behavior. Such as restitution that you owe for being convicted of a crime, or damage that you intended to cause.
  4. Contracts: The personal umbrella policy will not protect you from any liability that arises in connection with an oral or written contract. If you find yourself facing a lawsuit from someone that you’ve hired to work on your home, it’s unlikely that your umbrella insurance would provide protection.


Have questions? We can help! Click here to learn more about our services, or contact an agent at Staples & Associates for more details.

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