Umbrella Insurance – What It Does and Doesn’t Cover

Posted on January 31, 2025January 28, 2025 by admin

Umbrella insurance can reduce out-of-pocket costs you might incur due to general liability for an injury or damage. Let’s explore what this type of insurance covers and some limitations you may face as a business owner.

Umbrella Insurance Provides Enhanced Coverage

You likely have a liability insurance plan that provides protection against injuries and damage. However, a liability insurance policy has a limit, which outlines the maximum amount your policy will pay. If any expenses exceed this limit, you will be responsible for paying them. An umbrella insurance policy is an enhanced type of coverage covering the difference your liability policy doesn’t cover.

Umbrella Insurance Coverage for Unique Situations

Umbrella insurance coverage is beneficial for unique business situations. A business that generates a lot of revenue may benefit from being covered by an umbrella insurance policy. If a business owner deals with a lot of sales and expenses, a future lawsuit could be costly. Umbrella insurance coverage can also benefit a business that poses many hazards. If hazardous materials and dangerous equipment are used regularly, there may be an increased risk of someone becoming injured or something becoming damaged. An umbrella insurance policy offers additional liability protection that a standard commercial insurance policy doesn’t offer.

Insurance Exclusions

An umbrella insurance policy will not cover your business. If you are concerned about damage occurring to your business, you must obtain a separate insurance policy covering your business and the equipment within it.

Contact An Insurance Agent Who Serves New York

Our agents at AW Burchell Agency Inc. are here to assist. Schedule an appointment with an agent to discuss umbrella insurance coverage that will benefit you.

Can Umbrella Insurance Replace Other Insurance Policies?

Posted on March 28, 2024March 28, 2024 by admin

Despite our best intentions, incidents can occur where we or our family members are responsible for accidents that damage others or their properties. Usually, our auto or home insurance policies provide liability coverage for these situations. However, when liabilities exceed the coverage limits of the underlying policies, umbrella insurance becomes significant. If you have inquiries about your insurance coverage, including umbrella insurance, our team at AW Burchell Agency Inc., serving the Cortland, New York area, would be glad to assist you.

The Function of Umbrella Insurance

Umbrella insurance supplements them rather than replacing your primary insurance policies, making it a reasonably affordable option. Picture your auto and home or condo policies as the foundation of your insurance coverage. They build the framework and offer protection against claims within a predefined limit. Most people always stay within their primary coverage limits. However, if an incident exceeding your coverage limits does occur, it could result in the loss of your home, savings, or other assets.

Umbrella insurance operates like a protective layer over your foundational policies, paying out only when your liabilities surpass the confines of your primary policies. It is a secondary policy, meaning you must have the underlying auto or homeowners’ policies to obtain umbrella coverage. Furthermore, higher limits on the primary policies could result in a lower cost for your umbrella policy.

Most importantly, umbrella insurance provides you peace of mind, protecting you against unusual and unforeseen events.

Obtaining Insurance Through AW Burchell Agency Inc.

Knowing that you and your family are fully protected is certainly comforting. If you reside in or near Cortland, New York, do not hesitate to contact us at AW Burchell Agency Inc. Let us help you secure your peace of mind.

Retirees need umbrella protection

Posted on May 19, 2023June 6, 2023 by admin

Umbrella insurance covers you when you are held liable for more than what your insurance covers. It is usually the very wealthy who need protection because some lawsuits can get into several millions of dollars in damages. AW Burchell Agency Inc in New York explains that this type of coverage could also be good for retirees who may not have a large fortune saved up.

How does umbrella insurance work?

Umbrella insurance is for those cases where you are held liable for major damages, usually more than $1 million. If someone is hurt at your home, and you have a $300,000 limit on your policy, that is all that will be paid. If you get sued for $1 million and lose, you will have to pay $700,000 yourself if you do not have an umbrella policy. It also covers things like defamation, libel, and other legal settlements.

How does this coverage benefit retirees?

Many retirees have some money saved up for retirement. They are not millionaires but have enough to see them through their golden years, along with any government check they may get. Millionaires may get an umbrella policy to protect their millions, but retirees may also need to protect what they have with an umbrella policy. If you are a retiree and lose your savings due to a lawsuit, you will find it very hard to recover. An umbrella policy would save you in that situation. Someone getting hurt on your property or you causing a car accident could wipe out your savings if you do not have an umbrella to protect you.

Give Us A Call!

Call the AW Burchell Agency to discuss your insurance needs in New York. Regardless of how big or small your retirement savings are, you owe it to yourself to make sure that they are protected.