How Umbrella Insurance Fills Your Liability Coverage Gaps

If you have general liability insurance on your homeowners, auto or commercial policy, you may imagine that you are protected for risk exposure. However, if you do not own umbrella coverage, you may be setting yourself up with a situation that could sky-rocket out of control.
How so?
To answer that, simply imagine these very probable situations.
• Your teenage daughter recently passed her driving test and is on your auto plan. While backing out of the driveway, she crashes into a passing car. The other driver sustains extensive injuries as a result.
• You have been on a tight working schedule for quite some time. Ultimately, this leads you to fall asleep while you are driving, causing your car to cross over the divide onto the wrong side of the highway. The oncoming truck driver quickly swerves out of the way to prevent a crash. By doing so, the driver propels his truck off the roadway into a retail window, incurring damage while causing serious injury to a sales person.
• You finally have the financial wherewithal to replace your home's old kitchen counters and appliances. Unfortunately, as the kitchen team begins to install the granite tops, one worker falls over equipment. Because his own insurance does not fully cover compensation for his medical bills for the ensuing injuries, the boss files a law suit claim against you.
• Your business was severely impacted when your delivery man was the responsible party in a major multi-vehicle accident. Your employee was seriously injured, and four others were killed.
• After years of loyal secretarial work for the company, your administrative assistant is diagnosed with carpal tunnel syndrome. The doctor tells her she needs corrective surgery with follow-up extensive physical therapy treatment.
Now close your eyes and let your mind imagine scores of other frightening possibilities. It shouldn't be difficult to conjure scenarios that can happen any time - to you.
What would you do if your liability expenses exceed the standard limits of its policy? What would you do if you are responsible to pay out of the pocket? Encountering such scenarios could lead to catastrophic financial disaster!
Most folks do not have umbrella coverage in place. Considering the above examples and the fact that a personal umbrella policy is a relatively low cost investment, acquiring protective umbrella insurance is one of the wisest things to do for homeowners, renters and condo owners, as well as business and corporate property owners.

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