Equine Law Blog

Do You Need Umbrella Insurance?

Judgments, suits, or settlements seeking millions of dollars are not common, but they can occur.  Many people want to be prepared for this ever-present risk by purchasing extra insurance coverage through an umbrella liability insurance policy.  Is this coverage right for you?

What is Umbrella Insurance?

An umbrella liability insurance policy is designed to work with your existing liability insurance.  The term umbrella refers to the fact that the coverage is a separate policy that is "on top" of your primary liability insurance coverage, such as your homeowner's insurance, farmowner's insurance, automobile insurance, or commercial liability insurance.

Umbrella insurance policies are not expensive.  The low price reflects the fact that you will probably not need it.  But the extra protection could save your home, farm, and everything you own if you ever face a serious claim for significant personal injury or loss.

Problems to Avoid When Buying This Coverage

• Make sure that your umbrella insurance policy protects you for the same horse-related risks that your primary insurance policy covers. Make sure that the umbrella liability insurance policy you buy covers the same risks your primary policy covers.  That is, if your personal horse owners liability insurance policy protects you if your horse injures someone, make sure that your umbrella policy will covers these risks, as well.
• Keep proper coverage in the primary policy.  Umbrella policies sometimes require you to maintain a minimum level of primary insurance, typically your automobile liability coverage, at all times.  Check with your agent and make sure you comply.

If you have any questions about umbrella insurance, please let me know.

Categories: Insurance, Liability