Umbrella insurance covers beyond your home, personal, or business policy limits, and can be a lifesaver for high-value claims. But how do you decide if adding umbrella insurance is appropriate for your company or individual financial situation? The team at Staples & Associates can help you decide if umbrella insurance is recommended and provide guidance on umbrella insurance options.

When to Add Personal and Commercial Umbrella Insurance  

When it comes to protecting your financial future, standard insurance policies like home, auto, or renters insurance can only go so far. 

Personal Umbrella Insurance offers an extra layer of liability coverage that kicks in when your other policies reach their limit. Umbrella insurance can be a smart move, especially if you have significant personal assets, such as multiple homes, savings accounts, investments, or retirement funds. A single lawsuit could threaten everything you’ve worked so hard to build.

You should also consider personal umbrella coverage if you engage in activities that carry a higher risk of liability. High-risk activities could include hosting large gatherings, owning a swimming pool, a trampoline, or a high-risk dog breed. Other risk factors include having teen drivers on your auto policy, serving on nonprofit boards, volunteering in roles where personal liability is possible, or owning rental properties. 

Commercial Umbrella Insurance serves a similar purpose but is tailored for companies with high liability exposure. It extends the coverage limits of your general liability or commercial auto policies. This can be essential protection, especially if your business involves high customer foot traffic, such as retail stores or restaurants, or if your operations include vehicle use, product manufacturing, or professional services that come with inherent risks. In some cases, contracts with large corporations or government clients may require you to carry higher liability limits. 

If a claim or lawsuit could wipe out your assets or bankrupt your business, umbrella insurance is a wise safety net, and is usually available for a relatively low cost. 

Contact Staples & Associates today to discuss umbrella insurance, or for a full review of your policies.