If you own a home or business, you probably already have general liability insurance. If someone were to ever actually sue you, though, would the coverage be enough to protect your financial security? In cases of catastrophe, it may not be, which is where umbrella insurance comes in. This kind of policy is an affordable way to bridge the gap between the coverage you have and the coverage you may need in case of disaster. 

Why Do I Need Umbrella Insurance?

If you contribute to a car accident or someone gets hurt at your home or place of business, you may be financially liable for their injuries. If the policy limit on your general liability insurance coverage isn’t enough to cover the damages, the injured party may attempt to seize the assets you hold to make up the difference. As such, it’s advisable to purchase at least enough umbrella insurance to cover your net worth.

Although the court can technically order a payout that is larger than all available coverage, thereby forcing you to liquidate assets anyway, this will provide an added layer of protection (and considerable peace of mind). An umbrella policy generally starts at $1 million, which provides a decent cushion in most circumstances. 

How Can I Find Umbrella Insurance?

Umbrella coverage is only available in sizable amounts; however, because it doesn’t apply unless other policies prove insufficient, it’s relatively affordable. A seasoned insurance agent can evaluate your situation—including both your liabilities and assets—to help you determine just how much umbrella coverage you need. Your agent will then help you find a policy that is within your budget. 

If you need an umbrella policy to compensate your general liability insurance, turn to AiA American Insurance Agency in Birmingham, AL. Founded in 1986, this agency can assist with virtually all your coverage needs, from health insurance to homeowners insurance. A proud carrier for GMAC, Progressive®, and Dairyland®, they help clients secure policies with comprehensive terms. To request a quote for umbrella or general liability insurance, call (205) 940-9977 or visit their website to browse their services.