Umbrella Insurance and Why You Need It
In many ways, standard insurance policies such as homeowners, automobile, and general liability can be compared to purchasing a rain coat and rain boots to help protect you from passing storms and rain showers. These passing storms represent the lingering threat of liability in today’s society and business world.
More often than not, the rain coat and rain boots are sufficient to shelter you from the world’s everyday storms. These could include a fender bender, a visitor tripping down your stairs, or the financial payout for a minor damage to a customer’s property.
However, your coat and boots wouldn’t stand a chance against a severe thunderstorm, hail storm, or blizzard. These severe storms could include a catastrophic car accident, an on-premises fatality, or long, drawn-out liability lawsuits.
While the likelihood of a severe storm occurring is low at any one time, the chance always exists. That’s why most people keep an umbrella in their car or by the front door. There is nothing worse than being caught empty-handed when the sky opens up. Umbrella insurance functions in the same way. It offers an additional layer of liability coverage above and beyond your standard policies.