Navigating the Storm: How Umbrella Insurance Protects Your Assets
Umbrella insurance, or excess liability Insurance, is a critical financial tool that protects your wealth and assets and goes beyond standard insurance policies. Its importance in asset protection and risk management cannot be overstated. In this guide, we will explore what umbrella insurance is, delve into personal liability coverage, commercial umbrella insurance, and how it serves as a shield for your valuable assets.
The team here at the Streller Agency has decades of experience working with clients to choose policies that ensure adequate protection. For many of the people and businesses we’ve worked with in the Oklahoma City area, umbrella policies are a wise way to increase coverage and ensure protection.
Contact the Streller Agency today if you’re ready to talk to a team member about umbrella coverage.
What is Umbrella Insurance?
Umbrella Insurance is an additional layer of protection over and above your standard insurance policies like home, auto, or business insurance. It kicks in when the limits of your primary policy are exhausted. This extra protection can be vital in today's litigious society, where lawsuits can be costly and unexpected.
When you hear the term “umbrella insurance,” it can refer to a few different types of coverage, but in the most general sense, think of umbrella insurance as a safety net. It provides coverage for claims that your other policies may not cover.
What Does Umbrella Insurance Cover?
Excess Liability for Injuries, Damages, and Certain Lawsuits
As the name suggests, excess liability insurance provides additional coverage when the liability limits of your standard insurance policies are reached. For example, if you are involved in an auto accident and the damages exceed your auto insurance coverage, umbrella insurance will cover the remaining costs. It acts as a safety net, ensuring a significant claim doesn't devastate your financial well-being.
Personal Liability Situations
Umbrella Insurance is not just for your tangible assets. Personal Liability Coverage ensures that if you are held legally responsible for injury to others or damage to their property, you won't have to pay out of pocket after your regular insurance limits are exhausted. Imagine a situation where someone is injured on your property; the medical bills and legal fees can quickly add up. Umbrella Insurance takes care of those expenses, providing peace of mind.
A Few Types of Incidents Where Umbrella Insurance Might Help
Serious car accidents
Dog bites
Serious boating accidents
Accidental injury caused by you or a member of your household
Accidental damage to someone else’s property
False arrest or imprisonment
Slander and libel accusations
Your child or teenager is sued
You are sued because in relation to volunteerism work or board service
Do I Need Umbrella Insurance For My Company?
Commercial Umbrella Insurance
Commercial umbrella insurance offers businesses an extra layer of protection against potential catastrophic loss. It goes beyond the limitations of typical business liability insurance, safeguarding your company's assets if a central claim or lawsuit arises. In a world where a single legal battle can spell disaster for a company, this added layer of security is invaluable.
The risk of lawsuits, liability claims, risk of injury for employees and patrons, or other risks make umbrella policies wise for most Oklahoma companies. Our team can discuss the benefits with you, but we believe it is worth considering.
Suppose your business welcomes the public into your business (for example, you own a restaurant, retail store, spa, recreational facility, showroom, or any other commercial space that welcomes guests). In that case, there is a risk of injury which could result in a lawsuit. Some businesses, like those who work with state and federal governments, are required by contract to carry umbrella insurance. Other companies are by-nature at higher risk of lawsuits; if you have employees, subcontractors, or others dependent on you, let’s talk about umbrella policies.
Determining if you need umbrella insurance for your business is not black and white, so the best way to determine if you need it is to contact our team. We’d be happy to chat with you, help assess risk and make a recommendation.
Safeguard What Matters Most
Umbrella insurance serves as a vital tool in asset protection. Whether personal wealth or business assets, this policy acts as a safety net when unexpected, significant liabilities occur.
Here's why asset protection is crucial:
Protecting Personal Wealth: With extra coverage, your personal savings, home, and other investments are safeguarded from legal claims that exceed your standard insurance.
Shielding Business Assets: Commercial umbrella insurance provides additional protection to your business, ensuring that a substantial claim or lawsuit doesn't endanger your company's future.
Providing Peace of Mind: Knowing that you have an additional layer of protection brings peace of mind, allowing you to live and operate your business confidently.
Choose the Right Umbrella Insurance Policy in Oklahoma
Selecting the appropriate umbrella insurance coverage requires carefully considering your needs, assets, risks, and lifestyle. Working with a knowledgeable insurance agent who understands your unique situation can guide you in finding the perfect policy that provides ample coverage without unnecessary costs.
Umbrella insurance, encompassing excess liability insurance, personal liability coverage, and commercial umbrella insurance, is a multifaceted tool for comprehensive asset protection. Its role in safeguarding personal and business assets in unforeseen circumstances makes it an essential consideration in any financial planning strategy.
Whether you are an individual looking to shield personal wealth or a business owner seeking additional safeguards for your company, exploring the options and benefits of umbrella insurance is a wise and prudent step. By understanding what umbrella insurance is and recognizing its value in risk management and asset protection, you equip yourself with knowledge and protection that transcends ordinary insurance limits. It's not just a policy; it's peace of mind, a safety net, and a wise investment in your future.
With decades of experience helping Edmond and Oklahoma City residents with their insurance needs, we understand the unique needs in our area. The team at the Streller Agency is ready to help you understand umbrella insurance and assess your risk. Submit our “Request a Quote” form today to get in touch.
