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How umbrella Insurance Works

8/10/2017

It's reassuring to have insurance on our homes, our health and other parts of our lives. But, sometimes our primary insurance policies leave gaps in coverage, and limits on payments.

An umbrella liability policy covers a much higher limit, and goes above and beyond claims directly relating to your home and auto.

The main purpose of your umbrella policy is to protect your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries.

It is not just about what is in your bank account. Lawsuits can claim more in damages, putting your retirement savings and your home at risk. A settlement may even garnish your wages.

In these cases, umbrella insurance can cover amounts above the limits of your current homeowner and auto policies. It can also cover rental units you may own, and cover you in case of false arrest, libel, or slander.

Watch this short video from Travelers to better understand umbrella insurance.

Might you need a Commercial Umbrella Insurance Policy? Significant assets can be at risk when businesses are the target of lawsuits, if the cost of a claim exceeds the limits of a business’s underlying primary insurance policies. Commercial Umbrella Insurance extends liability coverage for an additional layer of insurance to further protect business assets.

The Bright Side: Umbrella coverage is inexpensive. With rates for around $17 per month*, a Travelers Umbrella policy is valuable protection. That is a low price to pay to ensure that your assets and future are protected, and for the peace of mind that comes with it. *Download the Travelers Policy overview below.