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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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