What is umbrella insurance?
Umbrella insurance is just what it sounds like: an insurance package that protects the insured person from a wide variety of afflictions. The umbrella can apply to many different aspects of life, but most of the time it applies to business.
Who is it for?
Umbrella plans are usually created for business owners with growing or enterprise level companies. Because there are so many different aspects of business that an insurance package can cover, some insurance companies chose to simplify the process to the end user and simply offer a plan that covered everything, no holds barred.
There are also umbrella plans for individuals, although this is not as common as using it for a business.
How does an umbrella plan work?
An umbrella plan is meant to make providing insurance for a company easy and straightforward. Basically, an umbrella plan covers everything that a business could get into trouble for including legal trouble, trouble with employees, trouble with the weather and even trouble with foreign governments.
Umbrella plans are meant to be simple; however, this does not mean that they should not be read over. There are many different kinds of umbrella plans based on the type of business that is being conducted, and a business owner should be sure to choose the right one.
What are the different types of umbrella coverage that are in existence?
There are umbrella coverage packages that cover all legal responsibilities of certain companies. There are also different plans that cover all employee lawsuits. There are coverage plans that protect a company from all acts of God or mistakes of employees at events.
What are the major benefits of an umbrella plan?
The major benefit of the umbrella plan is simplicity and a peace of mind. A business owner will not have to worry about expenses for any of his/her major concerns.