All About Umbrella Insurance

Thomson Schindle Green Insurance Company is a full-service, independently-operated insurance brokerage that provides insurance policies to meet your individual or business needs. In providing this service throughout Alberta, part of our endeavor is to ensure our clients and neighbors have the right information to make informed choices to mitigate potential risks to their personal and financial security.

Protecting your family and assets is a top priority, and one of the most thorough insurance products is umbrella insurance. Personal umbrella insurance is a type of insurance designed to add extra liability coverage over and above another insurance policy, such as auto or homeowners insurance, and comes into play when your underlying liability limits (such as from a homeowners or auto insurance policy) have been reached. In effect, umbrella insurance is meant to help protect you from large and potentially devastating liability claims or judgments.

Typical umbrella insurance coverage includes:
•    Bodily injury;
•    Personal injury;
•    Property damage; and
•    Landlord liability.

To better understand how a personal umbrella policy works, consider you are in an accident and it is your fault. Your regular automobile insurance may cover the other driver up to the limit you selected, but what if that limit is not enough to cover the other driver’s expenses? You may be legally responsible for damages beyond the dollar amount your car insurance policy covers, and if he or she sues, your personal assets could be at stake. In this or similar cases, a personal umbrella policy can help cover the additional costs and could help protect your bank account, home, and other personal property. In most cases, personal umbrella policies are available in million-dollar increments, from $1 to $5 million. While an umbrella policy is not required, it may offer increased protection in the unfortunate event of an accident.

What is typically not covered by umbrella insurance includes:
•    Business Losses – the exclusion applies even if the business is home-based. Personal umbrella insurance typically doesn’t cover other business-related liabilities such as a malpractice lawsuit, or losses in connection with your paid position as an officer or member of a governing board of a for-profit organization.
•    Personal Property – personal umbrella insurance is designed to help cover expenses if you are held responsible for damages to someone else’s property so coverage typically won’t apply if you cause damage to your own property. Note, any umbrella insurance benefits would kick in only after the underlying policy limits have been exhausted.
•    Intentional or Criminal Acts or Omissions – personal umbrella policy usually won’t protect you from the consequences of your own intentionally harmful or illegal behavior including any restitution you owe as a result of your actions.
•    Written or Oral Contracts – personal umbrella insurance typically won’t protect you from any liability that arises in connection with an oral or written contract you’ve entered.

Alberta Insurance
If you have a concern and want to know if personal umbrella insurance is right for you and your family, contact Thomson Schindle Green Insurance Company at 1-800-830-9423 or visit one of our locations in Bassano, Brooks, Calgary, Edmonton, or Medicine Hat today to receive a free quote.