Commercial Insurance FAQ

Umbrella insurance is extra liability coverage that kicks in when the limits of your existing policies (like auto or home insurance) are maxed out. It protects you financially if you're sued or held responsible for damages that go beyond what your regular policy covers.

Example: If your auto policy covers $250,000 in liability but you're sued for $1 million after a major accident, your umbrella policy can cover the remaining $750,000 - so it doesn't come out of your pocket.

Umbrella insurance typically covers:

• Bodily injury liability (e.g., car accidents, injuries on your property)
• Property damage liability
• Certain lawsuits - like defamation, libel, or slander
• Legal fees (even if you're not found liable)

It does not cover: your own injuries, your personal property, or criminal activity.

You'd need umbrella insurance when:

• You're involved in a serious car accident with major injuries or fatalities.
• Someone gets injured on your property, like falling down icy stairs.
• Your teen driver causes a multi-car crash.
• You're sued for something you said or posted online.
• A dog bite or pool accident leads to legal action.

Bottom line: You need it anytime your regular coverage isn't enough to protect your assets (or future earnings).

Start by adding up your net worth (home equity, savings, investments, etc.) - that's the amount potentially at risk in a lawsuit. Then add any future income someone could come after.

Most umbrella policies start at $1 million in coverage, and go up in $1M increments. Many households choose $1M-$5M based on their financial picture.

• Excess liability insurance only increases the limits of an existing policy (like your home policy) - it doesn't expand what's covered.
• Umbrella insurance adds both higher limits AND broader protection, like covering slander or false arrest.

Umbrella = broader and more flexible.

Excess = just more of the same.

Yes - most umbrella policies cover you, your spouse, and any relatives living in your household, like children.

Example: If your teen causes a serious accident or posts something online that results in a lawsuit, umbrella insurance can help cover that liability.

Always confirm with your insurer who's included, especially with blended families or adult children.

Umbrella insurance is surprisingly affordable.

Most $1 million policies cost $150-$300 per year, and each additional million typically costs $75-$100.

For the cost of a dinner out, you could protect yourself from financial devastation. Yes - it's absolutely worth it, especially if you have assets to protect or high-risk exposures (like teen drivers, rental properties, or a public-facing career).

Yes - and this is a big deal.

• Umbrella insurance often covers personal injury liability such as:
• Slander (spoken defamation)
• Libel (written defamation)
• False arrest, detention, or imprisonment
• Wrongful eviction or invasion of privacy

This is a major reason professionals, business owners, landlords, and social media users should consider it.

Yes - umbrella insurance is a secondary policy, so you must have primary (or "underlying") policies in place.

Most carriers require:

• Auto insurance with at least $250,000/$500,000 liability limits
• Homeowners or renters insurance with at least $300,000 liability

If you don't meet those minimums, the umbrella policy won't apply. Your agent can help you adjust your limits to qualify.

You're a good candidate for umbrella insurance if:

• You own a home or rental property
• You drive often - or have teen drivers
• You own a dog, pool, trampoline, or boat
• You host guests regularly
• You have significant savings, retirement accounts, or investments
• You're active online or have a public profile