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What Is A Personal Umbrella Policy?

A Personal Umbrella Policy, sometimes called umbrella insurance, is a type of liability insurance that may provide coverage over and above another insurance policy you may already have in place. An umbrella policy could provide coverage should you be held liable for more than your existing policy limit in the event of a covered claim.

Umbrella Insurance vs. Excess Liability Insurance

Commercial umbrella insurance should cover you with various liability coverage for your business. It takes effect when a basic liability policy reaches its limit. On the other hand, excess liability insurance provides you with additional liability insurance coverage over and above your existing limits on your commercial general liability or errors and omissions policy.

What Does a Personal Umbrella Policy Cover?

An umbrella policy may provide you coverage for the following:

  • Bodily injury

  • Property damage

  • Personal injury

  • Landlord liability

  • Particular lawsuits involving slander, libel, defamation of character, and other personal attacks

  • Injuries or property damage endured by the tenant if you're a landlord

What Does a Personal Umbrella Policy Not Cover?

Just like any other policy, an umbrella policy is set up to not cover every claim. Here are some injuries or incidents that you will likely not be covered for under an umbrella policy:

  • Damage to your property

  • Damage that you or a covered member of your household cause on purpose

  • Liability incurred in business or professional activities

  • The liability you agreed to assume under a contract you signed

  • Liability related to war or armed conflicts

  • Intentional or criminal acts

Do You Need Umbrella Insurance Coverage?

Umbrella insurance can be incredibly valuable in various situations, whether for your family or business. By purchasing umbrella insurance, you may be able to protect yourself from paying out of pocket for another person's medical or legal bills if you're found responsible for an accident.


While you may never imagine yourself in a situation where you are sued for damages, it is still smart to protect yourself and your finances against the possibility of being sued. Personal liability umbrella insurance may help protect your assets if you are sued and found to be liable.

At Second Western Insurance Services, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!

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