Umbrella Insurance provides exactly the type of coverage that it sounds like it would; an umbrella for you and your business to stand under. Liability issues are everywhere and you never know what could cause someone to present you with a lawsuit. Basically, Umbrella Insurance policies protect you from liability issues that go beyond the liability limits of standard insurance policies. These policies literally put you under its umbrella so that when you exceed the liability coverage limits on an insurance line, you are protected with an additional layer of coverage.
The terms 'umbrella' and 'excess liability' are often used interchangeably, but there are major differences between the two. Both are valuable because they provide coverage beyond underlying limits. But that’s where the similarities end.
The key difference is that an umbrella is an open-peril policy – which means if it’s not specifically excluded, it’s covered. In contrast, an excess liability policy only covers what’s included in the primary liability policy. This is an important distinction and one that could have major consequences.
In their weekly food Blog a journalist writes a detailed review of the food poisoning they believe they got eating at a local restaurant. Now they have something even tougher to stomach; a lawsuit from the restaurant. Even if the suit is deemed frivolous they still must respond to it which could incur significant legal expenses.
Joy Insurance is a premier independent insurance agency. Our number one product is service; service specifically designed to reduce your losses and control your insurance costs. Our commitment is to provide clients with the best insurance value and service available, while maintaining the highest ethical standards and credibility with our clients, carriers, and the public.