Umbrella Insurance

Limit Liability


Larry Harb:               

Umbrella policies. Everybody thinks umbrella policies cover everything. I’ve got personal umbrella policy, they say, and it covers everything. Well, they don’t. Umbrella policies, all they do is sit over other policies to give you bigger limits. Okay? Now, doesn’t mean I don’t think you should have one. You might need it. But you have to make a business decision. And that’s up to you personally to decide what kind of limits you need, okay? you probably never thought you’d hear an insurance person say, you might not need insurance. Okay? But if you don’t have any assets, and you have nothing to lose, you probably don’t need to buy insurance. But if you have personal assets and you have wealth, well, maybe you wanna think about insuring that so people can’t get to it. You get the people who say, well, this will cover everything—and it doesn’t, okay?

You need to look at your umbrella and see what policies it’s going over, okay? Because that’s exactly what it is. Normally, your umbrella policy will sit over your general liability, your property coverage, and your auto, and your worker’s comp. That’s normally where it’ll sit over, okay? And if you do get sued, and you’ve got a 1 million liability policy and you have a 1 million umbrella, so now you’ve got a limit of 2 million. And that’s what an umbrella really does. It just kicks the limit up. It’s a cheaper way of getting bigger limits.