Most Umbrella Insurance in Temecula CA require holders to have primary coverage such as auto liability, general liability, employers’ liability or workers’ compensation insurance. Below are a few considerations to make before purchasing this type of coverage.
The Insurer’s Assessment of the Customer’s Risk
Umbrella policies are mostly a matter of the insurer’s judgment, and ratings are given based on that judgment and the buyer’s risk level. However, many underwriters are willing to negotiate the provisions of these policies.
Underlying Coverage
For policyholders with significant liability exposure, high underlying coverage limits in areas such as personal injury or advertising may be required.
Defense Coverage
Defense coverage causes substantial variation in umbrella policies. Almost all umbrella insurance policies have provisions that protect the insurer’s right to handle claims defense. These policies often include coverage for uninsured exposures, even when losses don’t involve the umbrella agreement.
Additional Insured
Anyone named on an underlying policy is automatically covered by an umbrella policy. However, the coverage is no broader than that afforded by the underlying policy. If the insurer or the policyholder chooses not to appeal a judgment above the coverage limit, the umbrella coverage provider can do so at its own expense.
Pay a Little, Get a Lot of Coverage
A good rule is for the client to hold coverage equivalent to one or two times the value of their vulnerable assets. With it, the client can protect their money and ensure that the insurance company will provide an aggressive defense.
Exclusions
Commercial liability umbrella forms include exclusions that apply in certain situations, such as:
- Workers’ compensation and employers’ liability
- Liquor liability
- Racing activities, watercraft, and aircraft
- Pollution
- Electronic data
Umbrella Insurance Polcies in Temecula CA may be the right choice, but the buyer should understand what’s covered and what’s excluded before they buy. For more information on how to get umbrella insurance for yourself and the discounts you deserve, contact the agents at Winchester & Associates Insurance Services today.
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