People tend to not understand, or not think about Umbrella Insurance…until they need it…It’s worth a quick read of this post…

Umbrella insurance is one of the most-commonly misunderstood types of insurance. Because it’s a bit difficult to understand and surrounded by myths, too many businesses go without it and regret it later. Let’s take a closer look at what umbrella insurance is, and settle some common misconceptions about it.

MYTH #1: It’s Basically A Bunch of Insurances Combined.

This is the most common misunderstanding about umbrella insurance. It’s not just a mishmash of combined insurance types. It’s actually an extension – additional coverage purchased beyond your existing plans of any kind. All commercial general liability policies max out at a certain dollar value. If you hit that limit due to an expensive lawsuit, you’ll be on the hook for additional costs unless you have an umbrella policy with a higher coverage level. Say, for example, that a customer is severely injured on your property when she slips and falls through a glass display case. She sues for $2 million in medical costs, legal fees, and lost wages – and she wins. If your commerical general liability policy maxes out at $1 million and you don’t have an umbrella policy, you’re responsible for the remaining $1 million.

MYTH #2: Your Existing Policy is Plenty of Coverage.

As the example above shows, your existing policy might be enough, or it might not be. It completely depends on the situation.[…]

This line of thinking has been around since car insurance was invented…it’s time to shed light on this topic, and bust this myth for good… Conventional wisdom usually dictates that, all else being equal, women pay less for car insurance premiums than men because they’re inherently safer drivers. To be sure, the National Highway Traffic Safety Administration confirms that male drivers cause 6.1 million accidents annually, while women are at fault in 4.4 million crashes per year. Yet women are actually more likely to pay higher rates than their male counterparts, according to research just completed by the Consumer Federation of America (CFA), an association of more than 250 non-profit consumer groups. […]