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Category Archives: Umbrella Liability

The Advantages of a Group Umbrella Policy

Wealthy individuals are often targets of personal liability suits that can put assets such as a house, investments and future earnings in jeopardy. Why risk it? A Group Umbrella policy extends the limits on your homeowners, auto, and other personal insurance liability coverages and provides additional funds to cover your liability costs. Value Where it Counts Because many individuals within one organization are covered under a Group Umbrella policy, you obtain some key additional benefits over an individual umbrella policy, including discounted rates. The policy is issued under the name of the business, with certificates of insurance issued to each participant with their individual limits. To properly protect your assets, you most likely need a higher limit of liability to provide coverage on a worldwide basis over and above the basic limits provided under your primary policies. This comprehensive coverage can be purchased in the form of an excess, or umbrella, liability policy. Group Umbrella policies are available to companies with high-income executive teams. These group policies offer higher limits and broader categories of liability protection. The coverage can also be customized to each client’s unique needs. How it Works A Group Umbrella liability policy works in conjunction with, and supplements, your primary personal liability coverage provided under your existing insurance policies, such as homeowners and auto. Group Umbrella coverage is sold in million-dollar increments up to $5 million. This type of personal property-casualty coverage has the lowest ratio of premium-to-maximum claim payout of nearly all personal insurance lines. This price/value benefit is available because each participant’s level of risk is not individually underwritten; the risk is spread throughout the group, making the rates more reasonable. To qualify for group umbrella rates, insurers will typically require a minimum of 10 to 12 participants with some type of relationship to one other, such as a family or employer. However, this minimum is negotiable depending on the relationship and amount of coverage being purchased. Without umbrella coverage you are putting your business assets as well as future income at risk. Therefore, a judgment exceeding your coverage could result in a loss of your retirement and any planned legacy. Umbrella coverage is truly an essential component of your insurance plan and it’s important to choose a coverage limit that adequately protects you. With the benefit of group rates, the coverage you need becomes…
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How to Know When Your Business Needs Umbrella Insurance

Umbrella insurance is a broad coverage used to protect your business from liabilities that threaten its financial stability. This insurance extends over other policies to provide additional coverage when certain underlying policies have reached their limits. It also can kick in to fill in gaps that other policies don’t cover. The layers of protection makes it especially important for business owners; allowing access to higher limits of protection from risks, at an affordable rate. The Ins and Outs Umbrella insurance protects your assets if you are sued for an accident or something else catastrophic happens, by covering expenses over the limits of coverage. Keep in mind that umbrella insurance should not take the place of your business insurance; instead it should be considered supplemental insurance that you add to it. Judgments can be a lot bigger for businesses than they would be for individuals. One small accident on your business property can take down your business permanently. As your business grows, you may want to increase your coverage. It is important to carefully examine your insurance coverage as you become more successful to make sure you have adequate coverage. If your business has growing assets that you do not want to put at jeopardy, then it is very important that you obtain umbrella insurance so all your bases are covered and you can have peace of mind knowing you are fully protected. Increased Financial Protection Even if your business is already covered with general liability insurance,  businesses commonly come across legal judgments, settlements, or an expensive repair that exceeds your coverage limit under that policy. Umbrella insurance becomes increasingly important as you build wealth and assets, when you begin to build wealth or open your own business. What makes an umbrella policy particularly beneficial to business owners is its simplicity. For one single premium, you’re expanding your coverage limits over a broad risk territory. It stretches over many business activities, protecting your business and employees. Your Game Plan Evaluate the risks your business faces on a regular basis, how much contact there is with the public (customers, suppliers, partners, etc.) and the potential for lawsuits. If your business offers services, keep in mind that umbrella insurance will not apply in situations where malpractice would be called for. An insurance agent can help you determine which limit option of umbrella insurance…
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Going Beyond Your Automobile Policy

Protecting your vehicle with a New York Auto Insurance Policy is a top priority. However, what if you find yourself in a situation where your auto coverage is not enough? What happens if the limit fails to fully cover the other driver’s needs? The purpose of your umbrella policy is to protect your assets from an unforeseen event. In the event of a lawsuit, your umbrella coverage will pay for the damages you’re responsible for up to the policy limit. For example, if you’re at fault in a car accident, your automobile insurance will cover the other driver up to the limit you selected. According to an article in Nerdwallet, you might need umbrella liability insurance if you own property or have a lot of money in the bank. The best way to decide if you need umbrella insurance is by determining your net worth. If your net worth exceeds the amount of liability insurance you can purchase for your home or  vehicle, then consider the umbrella policy. For example, most insurers won’t sell you umbrella policy unless you have $250,000 worth of liability coverage on your car and $300,000 on your home. At AJ Benet, we make sure that your Umbrella Liability insurance includes more than the simple general liability, auto liability, and product liability. Our policies extend in cases where you underlying limits are exhausted. This provides protection from personal injury, liquor law, contractual and vehicle. Umbrella insurance policies also provide coverage for risks that might not be included in your primary commercial liability insurance policies. For more information, call us today at 888.639.4560.

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