Umbrella insurance is a type of personal liability insurance that applies to a broader range of situations than conventional business insurance. It's for those who may find themselves liable for a claim larger than what their homeowners or auto insurance will cover. If you own a boat, umbrella insurance picks up where your watercraft liability insurance leaves off.
Homeowners insurance covers serious damage or destruction of your house, but what else is covered? Generally, clothing, furniture, appliances and most other contents of your home are covered if they're destroyed in an insured disaster. You can also get off-premises coverage to file a claim for lost jewelry, no matter where in the world you lost it, although there are typically limits. If you own a lot of high-priced possessions — fine art or antiques, fine jewelry or designer clothes — you may want to purchase a rider or buy a separate policy to cover them. Liability coverage protects you from lawsuits filed by others, so that if your dog bites your neighbor, your insurer will pay her medical expenses.
How can you decide what kind of insurance is best for your family? A closer look at term and whole-life insurance will help in deciding between the varieties.
Have you heard of taking out life insurance on a key employee or partner, or on yourself as the proprietor of your business? The continued successful operation of your company may depend on it. If you have key people whom you see as crucial to your firm — workers whose absence would sink the company — you may want to consider taking out key person insurance on them.
You may have passed on interruption insurance because policy costs range from $750 to $10,000 or more, depending on business size. But consider this: Today there are a greater number of earthquakes, storms, floods and heatwaves damaging businesses in major ways. Since 1970, the number of disasters has more than quadrupled worldwide.
Typical employer-based health coverage doesn't pay for daily care services, and Medicare will only cover a short stay in a nursing home or a limited amount of at-home care. And so, long-term care insurance was born.
An umbrella insurance policy is very helpful when you are sued and the dollar limit of your original policy has been exhausted. The added coverage provided by liability insurance is most useful to individuals who own a lot of assets or very expensive assets and are at significant risk of being sued.
A deductible is the amount you have to pay out of pocket. If a health insurance plan has a $1,000 deductible, you'd need to pay the first $1,000 before the plan covers any expenses. You're responsible for any copayments or coinsurance fees.
Every organization—public, private or nonprofit, as well as the people who lead them—is vulnerable to a multitude of directors and officers liability insurance exposures. What are we talking about?
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