Umbrella insurance provides added protection from liability and in some cases covers legal costs for defending against a lawsuit. Umbrella insurance kicks in after the policy limits of other insurance are exhausted by the claim. A claim under umbrella insurance is also possible under certain circumstances when other insurance does not cover the incident, such as libel and slander.
An umbrella insurance policy is not only a good idea in the state of New Mexico, it is essential. New Mexico is a tort state. This means that even if the maximum amount of an insurance policy limit pays on a claim, there is still a possibility of a lawsuit for excess damages, injuries, or deaths that are determined to be a person’s fault.
Two prominent legal cases, with extremely high award amounts; show why having umbrella insurance is a necessity in the state of New Mexico:
Those are two extreme examples of what can happen. Nevertheless, even a smaller award of a multi-million dollar amount is enough for a person to lose everything or to bankrupt a business. Vehicle owners, homeowners, and business owners in New Mexico need to take these risks very seriously.
Umbrella insurance adds extra liability protection to auto, home, and commercial insurance policies.
General Insurance Agency are Clovis, NM umbrella insurance agents who are happy to discuss this type of insurance with you. We are independent insurance agents that are specialists in umbrella insurance coverage.
Contact us today for all of your insurance needs and to reduce your risk from such huge liability awards with adequate umbrella insurance coverage.