There’s An Umbrella For That!

How Umbrella Insurance Coverage Keeps You Protected



The world of insurance can be a downright pessimistic place. So much doom and gloom, so much “worst-case-scenario” thinking. So many rainy days. We like to say, “When it’s always pouring, it’s best to have an umbrella in-hand.” That’s a little insurance joke for you. You’re welcome.

All kidding aside, it’s our responsibility to help you plan for all of life’s little “Whoops” moments.

And when it comes to coverage, many different kinds might be right for you. But we also encourage our clients to seek out coverage that could provide protection if there are complicating factors that limit the coverage they already have. We do this because we know “life happens,” but it doesn’t always happen the same way – and whenever something doesn’t go according to plan (even accidents), we want to make sure you have the coverage you need to weather any storm.

And that’s where an umbrella policy comes in.


One of the questions we get most often is, “Do I need an umbrella insurance policy?” So, before we get into a few details about exactly what an umbrella policy does, we want to address who might need one. That way, you’ll know whether you should keep reading this.

  • From a 30,000ft view, here’s a shortlist of people who need an umbrella policy:
  • People who like to throw parties in their homes or places of business.
  • People who own dogs (yes, we know your sweet Rex has never bitten anyone but still)
  • Also, people who own cats.
  • People who employ staff in-home (like a nanny or a cook or a cleaning person)
  • People with large animals (no, grown children do not count). Horses, cows, goats, etc.
  • People who own a business where employees drive company vehicles
  • People who own a business at all
  • People who own a swimming pool, trampoline, or other potential backyard hazards
  • People who sit on the board of a charity
  • People who manage a family trust
  • And many, many, other people too

And this is the shortlist.

The longer list would have you scrolling for hours, and you don’t have that kind of time. There are LOTS of people who could benefit from having an umbrella policy. You are very likely one of those people.


In the simplest terms, an umbrella policy covers those things and situations that aren’t covered by your standard insurance policies. Here’s an example:

Your daughter is playing tetherball in your backyard with that neighbor kid who looks like Urkel. Your daughter gets overzealous and sends the ball sailing, smashing into Urkel’s face and causing severe injuries totaling $300,000. Your homeowner’s policy would pay out the first $200,000, and then your umbrella policy would pay the last $100,000.

Here’s another one:

Your employee’s boyfriend decides to drive her home. They take her company car. YOUR company’s car. On the drive home, he plows the car into a tree while dodging a squirrel. The tree topples over and crushes a one-of-a-kind miniature home for antique dolls. The policy you have in place refuses to pay out because it wasn’t an employee driving your car. But your umbrella policy DOES cover the cost of the vehicle, injuries, and a new dollhouse for Barbie. Good on you!

The thing is, there is a myriad of scenarios like this.

Life is often fairly predictable. That’s why you have car insurance, homeowner’s insurance, and so on. But for all the times that life is unpredictable, for all the things you can’t see coming? That’s where an umbrella policy kicks in over and above your other policy limits.

To know precisely what you’ve got covered and what would be covered under your new umbrella policy, we would sit down with you and go through your existing coverages and talk about where you might be a little lean.


Umbrella policies can be dense with details and knowing exactly what kind you need and what it will cover can be tricky ground. But you’ve taken the first step to being better insured by just expressing an interest in comprehensive coverage. Congrats!
You’ve come farther than most.

Looking to learn a little more? Interested in chatting with someone about if you really do need that umbrella policy?

Contact us below!

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