Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of an individual's or business's primary insurance policies. It's designed to protect against catastrophic losses or lawsuits that exceed the limits of the underlying policies.

Here are some key things to know about umbrella insurance:

• What is covered by umbrella insurance

Umbrella insurance provides additional coverage for liability claims that exceed the limits of an individual's or business's primary insurance policies, such as auto, home, or commercial liability insurance. It can provide coverage for a range of scenarios, including:

• Bodily injury: Umbrella insurance can provide coverage for medical expenses, lost wages, and other costs associated with injuries caused by the policyholder or their property.

• Property damage: Umbrella insurance can provide coverage for damage caused by the policyholder or their property to someone else's property.

• Libel or slander: Umbrella insurance can provide coverage for damages resulting from a lawsuit for libel or slander.

• Legal defense costs: Umbrella insurance can provide coverage for legal fees and expenses associated with defending against a lawsuit.

• Benefits of umbrella insurance

Umbrella insurance can provide several benefits, including:

• Increased liability protection: Umbrella insurance can provide additional protection beyond the limits of primary insurance policies, which can be especially valuable in cases of high-value lawsuits or claims.

• Broader coverage: Umbrella insurance can cover a wider range of scenarios than primary insurance policies, providing greater overall protection.

• Peace of mind: Knowing that you have additional liability protection can provide peace of mind for individuals and businesses.

• Factors that affect the cost of umbrella insurance

The cost of umbrella insurance can vary depending on several factors, including:

• The amount of coverage: The more coverage you need, the higher the cost of the policy.

• Risk factors: Individuals or businesses with higher risk factors, such as a history of claims or risky behaviors, may pay higher premiums for umbrella insurance.

• Deductibles: The higher the deductible, the lower the premium.

In conclusion, umbrella insurance can provide valuable additional liability protection for individuals and businesses. It's important to work with a trusted insurance provider to assess your risks and find the right coverage to protect against catastrophic losses or lawsuits that exceed the limits of your primary insurance policies