An umbrella insurance policy is an excellent option if your business is at high risk of lawsuits. You can also purchase a personal policy that will increase your home or car insurance liability limit. However, before choosing a policy, it’s important to understand how this type of insurance works and which legal expenses are and aren’t covered.
Umbrella Insurance Policy Legal Fees
Umbrella insurance doesn’t replace other forms of liability coverage. If you don’t have regular liability insurance, you can’t claim compensation under an umbrella insurance policy. Umbrella insurance picks up where your liability coverage leaves off, covering extra expenses that aren’t covered by regular insurance. For instance, if your liability insurance policy has a $500,000 limit, and you spend more than this amount to settle a case out of court, umbrella insurance will cover the extra expense.
Umbrella insurance also covers the cost of hiring a lawyer and a judgment against you or your business. It may also cover incidents that aren’t covered under your liability policy. However, you’ll need to pay the umbrella insurance policy deductible before you can claim compensation. Terms and conditions vary depending on the policy you pick and the deductible you set. Thus, it’s wise to read your contract carefully to ensure you get the coverage you need.
Contact the Inspeak office in Arlington, TX for More Information.
Do you need a commercial or personal umbrella insurance policy? If so, Inspeak can help you review your options and pick the best policy to meet your current and future needs. Our Arlington, TX office works with leading insurance carriers and offers personalized advice and assistance.
We look forward to helping you get the best coverage at the best possible price.
