Insurance is designed to offer policyholders financial protection after unforeseen challenges or during times of distress. But even many of the most comprehensive policies available don't provide total, 100% coverage. This situation is where umbrella insurance comes in, extending liability coverage beyond the limits of an existing policy. Below, learn more about the benefits of this popular insurance option for business- and homeowners

For Homeowners

An umbrella policy has a higher coverage limit than a homeowner's current home insurance policy, so it covers certain liability-related expenses associated with the property. It is especially helpful for homeowners who have valuable assets that exceed the home insurance policy's limits, and for those who have "attractive nuisances" on the property. Attractive nuisances are features like swimming pools, which are appealing but potentially dangerous liabilities. A homeowner who has an aggressive dog breed will also benefit from the additional liability protection of umbrella insurance. If you are a landlord with a rental property, umbrella coverage safeguards you if a tenant or their guest file a liability lawsuit.

For Businesses

A business umbrella policy differs from a homeowners' plan because it covers specific liabilities that the business owner faces. Those who work in professions with a higher liability risk should have umbrella coverage in place, such as attorneys, psychologists, and financial planners. While it will not protect the policyholder from personal business losses, an umbrella policy will extend coverage limits and make up for gaps in existing business insurance. A typical policy covers events like personal injury claims, lawsuits and legal fees, and errors and omissions that cause loss to a client.

To find umbrella insurance for your home or business, consult the professionals at Pearson & Barnes Insurance. With more than two decades of combined experience, they serve clients throughout the Pulaski County, KY, region. In addition to umbrella policies, they provide home, life, auto, and business insurance options. Call (606) 679-1450 or visit them online to request a quote.