Umbrella Insurance: How It Works & What It Covers


No one is perfect. That’s why we get insurance to protect ourselves, our family, and our assets. But sometimes regular liability insurance policies offer limited coverage. That’s where umbrella insurance comes in. If you’re sued for damages that exceed your primary liability limits, you run the risk of losing all of your savings. Insurance is designed to give you an extra cushion of coverage to help you pay what you owe and avoid financial ruin.

What Is Umbrella Insurance?

Umbrella insurance provides additional coverage beyond the liability insurance in your existing auto or homeowners policies. It is designed to cover expensive situations where medical bills or damage repairs exceed your typical policies. In the event of a lawsuit, insurance can prevent you from losing your savings and assets.

What Does Umbrella Insurance Cover?

Umbrella insurance policies cover expenses where you’re responsible for an injury or accident. This includes medical bills, repairs to damaged property, a legal defense, car accidents, guests who are injured while visiting your home, or if your dog bites someone. Umbrella policies also offer coverage if you’re sued for libel, defamation or slander.

What Umbrella Insurance Does Not Cover

Here are some losses typically not covered by umbrella insurance:

  1. Your own injuries
  2. Damage to your own property or personal belongings
  3. Intentional acts or injury
  4. Business losses
  5. Criminal acts
  6. Written or oral contracts

Who Needs Umbrella Insurance?

High status or wealthy individuals in particular need personal insurance, as they may be more likely to be a target of lawsuits. When deciding whether you need umbrella insurance, consider the value of your assets and any potential future income loss that would be at risk in the event of a major lawsuit. Purchasing an umbrella policy can save everything you’ve worked so hard to build.

CTG: Personalized Liability Insurance Solutions

CTG offers personalized insurance solutions tailored to your unique needs, risk level, and budget. We make the insurance buying process simple and accessible to all. Get started by scheduling a phone call, virtual, or in-person meeting with one of our experienced insurance advisors. 

Anton Thornquist CTG Insurance
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