Do You Need Umbrella Insurance for Business or Personal Coverage?

You can add umbrella insurance to any personal or business insurance policy that includes liability coverage, but which do you need? Those who work from home or run a business from their Houston, TX  home may need to add umbrella coverage to both their home insurance and commercial coverage.

You can’t buy umbrella insurance by itself. This type of secondary insurance requires a primary insurance policy to add it to as an extension of the liability coverage. That means that your primary policy must include a liability component to qualify for an umbrella policy from Modern Risk Management.

What does umbrella insurance do?

When you purchase a primary policy, such as home insurance or business liability, that policy contains a maximum liability payout. With home insurance, it could be as low as 10 percent of the home’s value. A business policy openly states its coverage.

If a guest to your home or office sustains an injury while visiting you, liability insurance covers their medical care costs and pays any settlement due to them. In many cases, the coverage on a home or business policy doesn’t fully cover the amount needed. The rest comes out of your pocket.

To avoid this, many individuals and businesses buy an umbrella policy. When the liability coverage on the primary or main policy fully pays out, the umbrella kicks in to pay the rest. A million-dollar umbrella policy costs very little annually but provides huge protection.

Contact Us

Contact Modern Risk Management serving Houston, TX, to learn more about adding umbrella protection to your insurance package. Let us help you protect your financial security.