Self - Employed Liability Insurance

If you're self-employed and have a small business operation, it's likely that you need liability insurance coverage but don't already have it. Unfortunately, the information available on liability plans for solo entrepreneurs and small business folks like you and me is pretty limited.

Have no fear...

In the following article, I'm going to walk you through the basic steps for setting up high-quality self employed liability coverage so you can be sure that you avoid a financial disaster in your own operation.

When most of us think of "insurance" we generally think of more personal coverage -- health insurance, auto insurance, even home insurance. These are the most common types of premiums most of us carry and pay for every year or every month.

What is Liability Insurance?

Sadly, these basic categories of insurance leave out what many people are discovering is one of the most important types of coverage you can carry as an individual -- liability insurance.

Simply put, liability coverage protects you from any unexpected events, losses, or accidents not otherwise covered by your traditional insurance policies.

But to really understand "liability protection" you'll need first to understand what a liability is in the first place.

Basically, you are typically liable for anything that you could be sued for in a court of law. (Keep in mind, I'm talking specifically about United States of America court systems and US law.)

Although we're discussing self employed liability insurance here, there is also personal liability coverage which can be obtained to protect you from losses occurring outside your business activities.

Business liability plans apply to things you could be held liable for specifically within your work realm.

Why You're at Risk if You're Self Employed

Chances are pretty good that if you're a self-employed individual, a freelancer, or a small business owner, then you're probably working in a professional capacity where you're advising, consulting, managing, or otherwise giving advice or recommendations to other people.

This is a really important point.

If you're doing any form of consulting, you are at risk for a lawsuit. Period.

Most people never think about this because, generally speaking, most customers and clients are very nice and friendly and we could never imagine them taking us to court and pursuing legal action.

But the more business you do and the more clients you take on, the more risk you take on.

How to Get Self-Employed Liability Coverage

If you're reading this article and considering getting self-employed insurance protection with a liability protection plan, it's really easy to get started.

The first step is to get a quote. And you can do that online quickly and easily right now!

A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

Personal Liability and Covering Your Assets

Umbrella insurance is a wonderful thing to consider in the world we live in. It will provide you with more money for your accidents that may happen in life. This can help cover your legal expenses if they were to go over your home or car insurance policy limits. Some insurance companies will offer up to $500,000 in regular coverage, and then offer an umbrella policy up to $1.5 million. This can be a great way to protect your assets if you deem necessary.

You should talk this over with your agent and see what options are available for you. They can also advise you based on your individual situation as well. Different people will require different types of insurance. Ask different questions to find different answers. I have known some people that have found it to be cheaper to get a $250,000 policy for themselves with a 2 million dollar umbrella policy than it was to just get a $500,000 policy. This doesn't make much sense to you and me, but insurance companies have their reasons for what they do. Just ask the questions and you might be surprised what you are able to find out. You can still enjoy a lot of insurance to help you sleep at night, while getting it for a very reasonable price.

I personally recommend going with big name insurance companies. I have some policies with smaller companies, but they are usually for rental property and such. Just call around and see what is available to you in your area.

Some umbrella policies are cheaper in other parts of the country. It all depends on where you live. I have known people to get a $250,000 policy in one area and another to get a $250,000 policy with a $1 million umbrella policy for the same price. It just depends on where you are. Insurance companies factor in many things to determine how much to charge, feel free to ask you agent what they factor in.

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Facts Everyone Should Know About Umbrella Insurance

Umbrella Insurance - sounds familiar, doesn't it? Many of us may have heard of this at one point or the other though most of us may know not much or anything about it. As the name itself indicates, the umbrella insurance protects an individual in times of legal troubles similar to an umbrella which protects one during a downpour. Well, it is a very beneficial insurance policy covering many areas which the home insurance or the auto insurance policies do not. Another noteworthy feature of Umbrella Insurance is that it is advantageous over so many other insurance policies as even after the exhaustion of an individual's regular policy it fills in the gaps in coverage.

It is a common knowledge that at no point of time any of us can foresee what might happen in the near or far future. There are so many instances wherein you or I have to face a lawsuit filed against us. For instance, you happen to injure someone with your car. He sues you for it and the legal expenses and the judgment costs levied on you exceed your auto insurance. Then, umbrella insurance comes to your rescue.

If you purchase the policy you can face such unforeseen situations without having to lose any of your personal assets. Though many people mistake it as an extra liability, it is not. Umbrella insurance comes to one's rescue in case if he is sued for a thing not covered by his home insurance or auto insurance.

The individual can select the amount of coverage after carefully calculating the worth of the assets he owns. For instance, if you have personal assets worth, say, a million dollars you have to go for a million dollar umbrella. Similar to an umbrella, it is also cheap. With just as little an amount as $120 dollars one can purchase as high as one million dollars of excess liability. Considering these two points, many individuals go for buying an umbrella policy the cost of which is far more than the actual worth of their personal assets. The excess liability provides protection for many things such as imprisonment, defamation, invasion of privacy and many more that have nothing to do with the car or home you own.

One important point worth considering is that an individual needs to maintain a certain amount of liability on his home and auto policies before seeking to purchase the umbrella policy.

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Insurance Phoenix - The Amazing Umbrella Policy

Umbrella insurance protection is usually one of the last insurance products a consumer buys. I understand the reasoning. A family budget is stretched thin and we often feel "insurance poor".

But what happens if you or a family member (such as a teen driver) is involved in an auto crash that injures others? Do you have high bodiliy injury limits under your auto insurance policy? What if the other person is disabled or killed? If you calculate a person's worth on that basis, I bet 99% of insurance buying consumers have too little protection under their auto policy.

An umbrella policy goes hand in hand with an auto insurance policy and home insurance policy and costs about $350 or less annually for $1,000,000 protection. This premium varies bases on other factors (if you own rental properties, have recreational vehicles, teen driver's).

If you have too little bodily injury protection under your auto policy, then what? Do you sell your home? Have 25% of your wages garnished for the next 15 years? Cash out a 401k, IRA or something else?

When you buy an umbrella insurance policy keep in mind that you are protecting your assets and income.

Be especially careful when you have teen drivers on your auto policy. Teenagers have more accidents than all the other age groups combined. Consider increasing your deductibles on your auto insurance policy and home insurance policy.

Consider if you have an auto insurance policy or home insurance policy with a $500 deductible and you have a $750 claim. Are you going to file a claim for the $250 difference or pay the entire $750 out of pocket to keep the claim off your record? Many people will pay it out of pocket. If this is you, consider increasing your deductibles.

A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

Does Your Umbrella Policy Really Cover You For All Perils And All Risks?

Umbrella policies are an extra policy that covers over and above your homeowner and/or automobile insurance coverages. But some people think that they are all risk and all peril policies that cover any possible situation that you might run across. While they do cover many things, there are some situations that are not covered.

So what is not covered? The answer may surprise you.

1. Intentional Damages: If you intentionally damage someones property, or intentionally injure someone, you are usually not covered. Most of these policies specifically exclude anything that can be classified as intentional damage.

2. Exotic Vehicle Liability: While snowmobiles and golf carts are usually covered, others are not. If you own, are injured on or have someone injured on your; jet-ski, personal aircraft, hovercraft or para-sender, you are probably not going to be covered. You need to ask your insurance agent about specific coverage for these exotic situations.

3. Damages To Your Own Property: Damages to your own property are not covered by most umbrella policies. Depending on how the damages happen, you may be covered by your homeowners, auto or the policies of those that damaged your property.

4. Business Related Activities: If you run a side business out of your home and someone gets injured while participating in your business activity, these situations are usually excluded from a personal liability umbrella. You need to look into a business liability umbrella to cover any business activities.

5. Workers On Your Property: If you have a house cleaner, maid, handyman or landscaper that does work on your property, they are usually not covered under your umbrella if they are injured while performing any services for you. These casual workers should be carrying their own insurance coverage for such situations and you should make sure they have it.

Summary: Feeling the sense of security that an umbrella policy provides is something that most insurance agents are very quick to tell you about when they are trying to sell you a new policy. Make sure that you ask about any specific situations that you feel are relevant to your personal situation. If they cannot give you concrete written proof that these items will be covered, you should expect that they are not.

To discover additional financial and income tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to creating wealth is knowing where you are and then charting a path that will enhance your financial strengths and correct your weaknesses.

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Why You Need An Umbrella Insurance Policy?

You might have heard about Umbrella Insurance, but may be you do not exactly know what it means. It does not guarantee you to stay dry, while walking in the rain, but it provides an umbrella of almost everything that other traditional insurance policies do not. As well as this, fills in gaps in coverage after your limits of standard policy are exhausted.

After realizing the meaning of this insurance policy, you will probably have one question - Why I need an umbrella insurance policy? This article will basically respond to your question.

On a daily basis, there are personal complaints filed opposed to ordinary people, with various reasons. Once or if it happens to you, you might be prepared for it. Frequently, individuals are charged and have no further protection to protect the claimant from going in the lawsuit after this. In this case you need to have an umbrella insurance coverage and you will avoid such sticky situations.

Umbrella insurance is often stated as excess liability. It gets going when the basic limits on your car or home insurance are exhausted, or if you are generally charged for something that is not included in your traditional insurance policies.

The majority of insurance companies won't give you coverage except you have both home and car insurance agreement with them.

It is essential to understand that the excess liability defends you for all kinds of items that have nothing to share with your auto or home. Things like mistaken arrest, false custody, slander, unlawful access or deportation are included in your umbrella.

In addition, some umbrella insurance policies offer coverage for those, who have connection to any charitable organization where they associate.

It is not a requirement that everyone should have an umbrella insurance policy, but you may be amazed at how many citizens necessitate it. You are recommended to obtain this policy if:

1. You hire out your house or join in a holiday exchange program with other holidaymakers.

2. You are a business proprietor and if you possess a multimillion dollar company, in that case make sure you have this policy.

3. You allow people to look after your house while you are away.

4. You have a housekeeper, gardener or other person who works at your house and who are not qualified or joined.

These are the main points that will help you recognize why you need umbrella insurance policy. If you find yourself in one of these categories, you are advised to call insurance companies and get an estimate of an umbrella insurance policy. Prices are low and so it is well worth your money. It does not even make awareness to take additional risks when safety can be acquired at such a low price. Remember that your safety is the foremost.

Enjoy yourself with an umbrella insurance policy. This kind of insurance provides an extra peace of mind by defending your possessions and your well-deserved money.

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Do I Need Payment Protection Insurance?

Payment Protection Insurance (PPI) is a loan that is provided to cover a debt that is presently outstanding. It is an insurance product in the form of loan or an overdraft, and is commonly sold by banks, insurance companies and other credit providers as an add-on to the loan or overdraft. The credit providers offer this loan to you if you are unable to pay some debt on time due to financial crises.

Payment Protection Insurance is at times also known as Credit Protection Insurance or Loan Repayment. The suppliers of this insurance can vary slightly however, Payment Protection Insurance covers a person against an accident, unemployment, illness or death. All these are circumstances that may be a reason for preventing a person from earning a salary by which they can pay their debt.

This insurance usually covers a minimum repayment against the loan or overdraft for a particular period, if all the appropriate criteria are met. Normally this time lasts for about 1 year or so. After this time, the person must find some other sources to repay the debt. Normally people are able to find or start their work again by this time so they can repay the debt themselves.

Payment Protection Insurance though helps to repay your debt at the time of crises but obtaining it is not an easy job. You can assess if you need payment Protection Insurance by pondering over a few things. You should decide whether insuring your loans is a necessity for your lifestyle.

For example if you are old or very likely of getting an illness; if you have a large family to support or if your financial conditions are quite stressed, then you have a need for payment protection Insurance. If you are self-employed, then there is no point in taking PPI. Even if you are working part time or are suffering from any sickness, then you should not go for Payment Protection Insurance since it is likely that you would not be able to repay your debts even after the period for PPI is over.

If you have any illness like cancer and you are hoping to get PPI, then it is needless. Lenders are aware of the fact that these diseases can be diagnosed and treated much quicker than in the past and they are reluctant to offer the loan. So the diagnose would not definitely end up in getting you this loan.

Before deciding whether you need a Payment Protection Insurance, you must check on your company's policy regarding long-term sickness. Many firms and companies pay you salaries in case of serious sickness. Furthermore, some of the larger companies have schemes under which they pay you your salaries for as long as 6 months.

In such a case, you would not need Payment Protection Insurance to repay your debts. Moreover, if your spouse or partner is earning well and can support you while you are sick, then again you do not need a PPI. Although PPI is very useful when you are in crises, before taking it, you should rationally decide if you need it or not. Not only is it difficult to get it, PPI Claim also does not come cheap.

A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

Understanding Umbrella Insurance

Umbrella insurance provides blanket liability protection for individuals and their assets. These policies go above and beyond the limits of a primary auto and home insurance policy, and also fill-in the gaps in those policies. The high limits of an Umbrella policy protect an individual in the event of a large dollar amount claim. Most Umbrella plans begin at one million dollars in coverage, but they can be purchased with much higher coverage limits.

For instance, an umbrella policy would pay out in the event of auto accident in which someone was severely injured or killed. In the event of a severe traffic related injury, liability payouts in the court system have been as high as millions of dollars. With most people only carrying $100,000 per person and $300,000 per accident liability limits, its easy to see how necessary an umbrella policy is to one's financial health. Without that coverage, the at-fault party is responsible for the remainder of the payout after the policies coverage limits have been exhausted. So, if you cause an accident that results in $800, 000 in damages to one person, and only carry liability limits of $100,000 per person and $300,000 per accident, you will be stuck paying $700,000 of the bill.

The need for umbrella coverage is large, although largely unfamiliar to many people. Most people who have a net worth under $500,000 assume they do not need such a high liability limit. What most of these people don't realize is that, in the event of a large dollar amount claims, not only can real property be taken, but future earnings can also be garnished to pay for the remainder of the bill after the insurance limits have been exhausted. This makes Umbrella coverage a crucial coverage for any wage earner to carry.

The cost for this type of coverage is relatively low. The premium depends on the risk, of course, but the average annual cost for one million dollars in coverage is $200-300. The coverage amount of liability blankets the coverage on your existing policy (i.e. if you had $500,000 liability limit on your home and a one million dollar umbrella policy, you would have coverage up to $1.5 million). Umbrella insurance can also fill in the gaps of liability coverage where your home or auto policies may not provide coverage. For instance, umbrella policy can provide coverage in the event of libel, false arrest, slander, or invasion of privacy. In this sue happy world we live in, many are finding that it is better to have ample coverage than try to save a few dollars.

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Individual Health Insurance Versus Family Insurance - Which Is Better?

As an insurance customer you may have to consider which is more cost effective, an independent health insurance plan or a plan that includes your family. Individual health insurance will generally be cheaper than health insurance that must be extended to cover several individuals unless the individual in question is suffering from numerous complications. There's still a lot of decisions to make if you go with an individual insurance plan like do you want a basic or major insurance plan, do you want to be able to pick which doctor you go to and have a more expensive plan or do you want to choose from a list of doctors available from your insurance company and see them thus having a smaller premium to pay.

However, this all changes if you have to pay for not only yourself but your dependents' health needs. In this case it's cheaper most times to have plans that include your dependents as four individual plans will of course, be more expensive than one plan that covers all four individuals. The more people covered under a particular insurance plan, the more expensive it will be in much the same way as the more people covered under an umbrella, the bigger the umbrella needs to be.

Of course, the more people covered under an insurance plan, the more problems you may run into in paying for the plan as smokers' plans are more expensive than non-smokers, people with asthma or diabetes may not fall under the insurance's payment plans as this may qualify as a preexisting condition. Gender, age and general health previously is also a large factor in determining the cost of premiums.

Family Insurance plans cover all the same things that individual plans do including x-ray and laboratory service, prescription medications, surgery, hospital stays, emergency treatment, ambulance services, dental and mental health care. However, like most insurance policies eye care services are usually not included and can be added on for a fee.

Basically the choice is entirely dependent on the make up of your family, and the decision should lie upon which would be better economically for your budget. A health care plan that caters to individual needs that may not need to be addressed by the entire family for example an asthmatic child may need special care his or her siblings may not need. Or you can purchase a health care plan that covers your entire family, smokers and alcohol consumers alike.

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Architect Liability Insurance

Architects have always been in demand for their ability to design houses and buildings that people hold in awe. It is a highly skilled profession, where projects range in size and scope, from small office buildings to colossal sports stadiums.

However, most people can only see the bright side of architecture as a profession and do not realize that it is fraught with responsibilities. Any architectural firm may incur heavy liabilities due to the slightest error, oversight, or omission.

Such conditions require the protection of architect liability insurance for an individual architect or his/her firm. It protects professional architects in case of any legal claims that allege negligence on the part of the architect in the execution of services. At times, even when the case proves to have no validity, the legal cost involved in fighting the case can be substantial and can even leave an architect or firm reeling from the financial pressure.

Hence, architect liability insurance is a must for all architects and firms. There are various insurance and brokerage firms that offer architect liability insurance. While many of these offer the architect liability insurance as part of their other insurance packages, some others especially deal in architect liability insurance. It is a better idea to go with a brokerage or insurance firm that deals specifically with architect liability insurance, as they are knowledgeable of the field of architecture and may be open to negotiations on the premium price.

One can find information about such insurance and brokerage firms easily on the internet. However, like all types of liability insurance, it is important to first have a proper understanding of the needs from the insurance as well as what one is looking from a architect liability insurance company.

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Umbrella Insurance - The Best Liability Insurance

What is an umbrella insurance policy? This insurance policy has proven itself as the best insurance policy and people are curious to know more about it, so that they can avail one of the best opportunity for securing their assets and liabilities. Umbrella insurance policy as the name suggests, is a full protection plan against the hard hitting crises. Its protection is similar to that of an umbrella, which protects you from bad weather; be rainstorm or harmful sun rays.

In this article, we will discuss the benefits and advantages of an umbrella insurance policy. This insurance plan or policy provides you a complete coverage for your injuries, liabilities, assets and damages to any property or possession. From this we can understand the effectiveness and benefits of this insurance plan in the days of adversity and crisis.

There is a long list of covers offered by an umbrella insurance policy. This insurance plan is basically liability insurance with a number of additional packages. A person can chose a number of assets, for which he requires an insurance plan.

Furthermore, this umbrella or excess insurance product also helps in the defense in lawsuits as matters of your landed property may lead you to the court. The umbrella insurance plan helps you in getting a suitable and proficient lawyer. To avail such an outstanding insurance policy, there is an eligibility criterion for the selection of suitable candidates; therefore, you need to understand the basic terms and conditions in relation to the umbrella insurance products. The basic condition or constraint to meet the criteria is to set the minimum limit on your liabilities, such as your vehicles and homes.

The reason behind the remarkable popularity of the umbrella or excess insurance plan is, its convenient and flexible mode of payment as well as easily payable premiums. The umbrella insurance policy is of great benefit for everybody. Suppose, you had an unfortunate accident and the damage to your car will cost a fortune or you may be injured seriously. Usually in such a case, the other insurance plans will pay for your car damage and that's all; but umbrella insurance product takes coverage to another level and provides you adequate compensation for the personal injury as well. I hope that you will be able to understand, what is the true worth of an umbrella product and to what extent this insurance plan can be beneficial to you in securing your future.

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The Basics of Umbrella Insurance Policy

The personal assets of an individual are the assets he has purchased with his hard-earned money and therefore it would be painful to part with them. Generally, personal assets of an individual are at risk when he is unfortunately involved in a law suit filed against him, due to say an accident that may have not occurred due to his fault. The legal expenses and the amount awarded to the injured person on the other side by the judge may exceed the liability insurance covered by your home, auto and other policies.

Now, what is this liability insurance? Well, it is a special kind of insurance policy of an individual that covers things like the legal defense representative, the medical bills of the person injured because of your fault, his rehabilitative treatment and the wages, he lost. It is during this kind of unwanted and unforeseen situations that the umbrella insurance extends its helping hand. To explain it further, say A happens to injure B in an accident due to his negligence. Say, the court awards the injured person three hundred thousand dollars; but, unfortunately the auto policy of A covers just two hundred thousand dollars. During such a situation, it is the umbrella insurance that will pay the rest of the amount, that is the additional one hundred thousand dollars, to B.

Back in the past, it was the well-to-do people, who considered purchasing umbrella policies. The scenario is changing now. Now, it is the common man who is more interested in going for umbrella insurance, in order to save his personal assets. The protection the umbrella insurance offers also extends help, when the liability on the individual's other insurance policies stands exhausted. One can go for the umbrella insurance policy without having to bear huge costs. The added liability protection or the added coverage far exceeds the added cost.

Further, umbrella insurance is all the more beneficial to individuals', who happen to receive huge amounts within no time, say by winning a lottery or the sort. This is because there are always several dishonest people around us always on the lookout to make money easily. There is every chance that a couple of them might file false law suits against you to grab away a portion of the wealth. Thus, it is always a wise decision to go for an umbrella insurance to protect your personal assets. Go for it.

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Umbrella Insurance - ANPAC

High dollar judgments are brought against individuals and awarded to injured parties every day. Add to that that today's society is more than happy to enter the court room in order to sue and money-hungry attorneys who are competing for their business, then you could end up with a legal judgment against you that could result in your being in a severe financial bind, if not bankrupt.

For example, the lights at an intersection have stopped working and you and a van full of people both head into the intersection, colliding. A young girl in the van suffers an amputation as a result and her family sues and receives a judgment in the amount of one million dollars and your maximum limit on your automobile insurance is only $250,000. Who will pay the remaining $750,000? Yep, you guessed it-you will. And, in order to collect this judgment, your assets, to include your home, savings accounts, mutual funds, stocks, bonds, your car and boat and your paycheck can be attached in order to pay it. A judgment of this kind can ruin you!

ANPAC, part of the American National Family of Companies, can provide an umbrella policy that will close that gap. A personal umbrella policy can provide up to an additional $5 million in financial protection for you and your family, over and above your primary limits when it comes to Property Damage, Personal Injury or Bodily Injury.

ANPAC requires that you carry a minimum of Automobile, Personal, Farm, Watercraft or Rental Owner's liability. That minimum will vary according to the state or territory in which you live and are standard amounts on most existing policies industry wide.

The ANPAC site enables you to find an agent by using your zip code or with one of their other search methods like area code, state, city & state, or an agent's name. You cannot get a quote on the site, only because American National feels that you cannot possibly get an accurate quote by inputting to a generic form online. There are just too many variations and attributes that can change your rate. But, when you call or request to be contacted, there is absolutely no obligation to get coverage through them, and any agent will understand that you are being smart by "shopping around" for the perfect coverage at the perfect price. An agent can advise you on the best coverage limits, the right deductible for your situation and on money-saving ANPAC discounts and rewards. The quote you receive will be fast and accurate and if it's not, then you can go elsewhere and that particular agent lost your business because he or she didn't do their job.

It's plain and simple. You are paying for a service. So many not only don't understand their insurance coverage, but are also intimidated by their insurance agent and the company he represents. Somehow the insurance industry has made us afraid to "step wrong" with the threat of dropping coverage or inadequate claim payments.

You can shop for insurance, to include umbrella insurance, just like you would shop for a major appliance, a remodeler or any other service or product. But also remember that your record speaks for itself. If you have been a reckless driver or have been convicted of numerous moving violations or DUI, then you can expect to either pay exorbitant rates or to not be able to get umbrella coverage. Insurance is a privilege, not a right and insurance companies are not out there to lose money. They are also not a 'not-for-profit' organization. They can go broke just like the next corporation, so they must have limits in place for risky clients.

But, thorough research and understanding your current insurance policies will help you when it comes to shopping and comparing your umbrella coverage options.

A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

The Purpose of Umbrella Policies

Being a homeowner requires you to take precautions to protect yourself from large claims that may be over your policy limit. These claims can ruin you financially by taking your personal assets and savings. The purpose of umbrella policies is to protect you from something like this happening.

These types of policies give you excess liability coverage and provides additional protection for damages you have incurred. Umbrella insurance serves as a back up insurance policy if the primary policy cannot handle an extremely large claim. In a sense, it extends the coverage of your primary policy.

The number of lawsuits has been on the rise during the last 50+ years. Even frivolous lawsuits against you will require you to pay legal fees, which may be more than your original policy allows. Umbrella policies can cover these additional legal fees and trial costs.

The primary purpose of an umbrella policy is to make sure your out of pocket expenses with regards to a claim are kept low. The coverage will kick in until the coverage provided by your primary policy is exhausted.

There is a misconception that umbrella insurance is only for the wealthy. This is not the case at all. Any policy holder having considerable savings or investments would be best served with an umbrella policy. The price is relatively inexpensive and can protect your assets from liquidation.

Umbrella policies can be a smart financial tool if used properly. It is important to look at your personal situation to determine if the extra cost would be beneficial to you.

A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

Why You Should Consider Umbrella Insurance

Why do you carry an umbrella? The easy answer is so that you protect yourself from the rain, right? Well, not exactly. You also carry an umbrella in case it rains, at least forward-looking people do. And business owners and professionals looking for the right insurance always have to be forward-looking, don't they?

In other words, an umbrella is an "insurance policy" in the event that weather disaster strikes you. You may have a waterproof coat on. You may be wearing rain boots. You might have even picked a route to walk on which provides you the maximum shelter from rainfall. But you'll still carry that umbrella around with you because you want to make sure you don't get soaked once the unwanted event occurs, don't you?

Well, it's not all that different when it comes to formal insurance polices. It's why they've come up with something actually called umbrella insurance. Those creative geniuses in the insurance industry have an answer and a name for everything, don't they?

To put it in the simplest terms, umbrella insurance is extra coverage you get just in case you your basic coverage runs out. So, if you have, say, professional liability coverage of up to $1 million, and a claim is made against you for $1.5 million, the umbrella portion of your coverage can kick in and prevent you from paying the full amount. Just as a real umbrella can save you from the disaster of your hair getting wet, despite the most waterproof hat on the market, good umbrella coverage will provide you with protection in case your basic coverage gets soaked, too.

There are essentially two advantages to obtaining umbrella insurance. One is that it can leave significant assets covered for a relatively small price. The other advantage is that it can simply provide you with more comprehensive coverage -- above and beyond individual policies such as professional liability.

Individuals or professionals who have considerable assets that could be at risk under the threat of a lawsuit might want to consider an umbrella policy. Professional liability alone may not be enough, since the limit of that policy could only cover a certain amount of your assets. By investing in an umbrella policy that would increase the amount of your assets covered, the potential savings in the end could far outweigh the additional costs. Liability insurance is meant to protect you from the nightmare lawsuit. Umbrella insurance does just that if you have considerable assets that could be at risk.

The other thing to take into consideration is that, not only does an umbrella policy provide you with added insurance, just like a real umbrella, but it also provides you with coverage that brings together various different aspects of your specific insurance policies. In other words, this kind of policy puts under one umbrella components that would otherwise be included in separate coverage. There go those insurance experts with their clever titles again. So, a good umbrella insurance package can not only end up costing you a bit less to cover more assets, it can save you the time and effort to seek out individual policies to cover various different components of your business.

For example, instead of, say, getting one policy for professional liability, another policy for property coverage, and yet another for worker's compensation, a cleverly constructed umbrella policy can create for you elements of all of them, save you money, and leave you more widely and deeply covered than you otherwise would be. Like all good insurance policies, it leaves you prepared for when that rainy day hits. You'll have that umbrella over your head to meet that day when it comes.

Now, before coming to the conclusion that, despite all the warnings and all the concerns, you probably don't need umbrella coverage, think about some of the consequences of not getting it. For a relatively small extra investment, is it really wise to simply write off the concern and pretend that you don't have to worry about it?

Here' some food for thought. No matter how careful or good you are, and no matter how prepared you think you are to avoid mistakes and causing harm to others, there are two things you have to worry about with respect to umbrella insurance and professional liability.

The first is that you're human. You're not superman -- or superwoman. As a business owner or professional, you are going to make mistakes. You don't know when or how, but being human means that they mistake can occur one way or another. And they can certainly happen in the normal conduct of your business. In fact, all that has to happen is for there to be a perception of a mistake made by someone you do business with, that causes damages, that you can still end up paying for in terms of legal fees and awarded damages.

The second thing to worry about if you don't have umbrella insurance or professional liability coverage is human nature, especially in today's environment of the frivolous lawsuit. You almost can't imagine the ways in which your business might touch others, and the ways in which someone out there may claim that the harm they suffered was as a result of something you did. You cannot possibly protect yourself from such a scenario without things like professional liability which may include added umbrella insurance. With these under your belt, you help protect yourself from the nightmare lawsuit you never dreamed of ever having to fight.

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