Should I get an umbrella policy for my business or for myself?

Most people get umbrella coverage because it provides extra liability coverage that exceeds all their other liability policy limits.  Without that extra protection, a person or business found liable could end up being responsible for:

  • property damage 
  • medical bills 
  • and legal fees if they aren’t covered. 

Some people mistakenly believe that only people with a lot of money or big businesses need an umbrella policy. However, umbrella insurance can provide needed protection both to individuals and to Clovis, NM small business owners. 

At General Insurance Agency, we can help you understand how much risk you face depending on your personal circumstances. What matters with umbrella insurance is how much risk you could realistically be facing. 

Even though it is surprisingly inexpensive, an umbrella policy usually has a 1 to 2 million dollar limit. The important thing to remember, though, is that the umbrella policy won’t take effect until your regular liability policy maxes out. You need the first liability coverage before you add the umbrella policy.

You can use umbrella insurance to complement your renter’s insurance, auto insurance, and/or business insurance. You also need to remember that while you can extend your coverage over multiple personal areas, such as auto and rental, you can never use one umbrella policy to cover both personal and commercial needs.

An umbrella policy doesn’t cover every kind of liability claim, and it won’t cover your own costs. But it will help in many situations, such as if you are found liable in a vehicle accident and your auto insurance doesn’t cover all of the property damage, or if you own a business and someone gets hurt on your property and the medical bills go past your limits.  

If you want to know how umbrella insurance can help you in Clovis, NM, call General Insurance Agency today.