Personal liability insurance protects all of your assets by paying claims and damages made against you in case you injure other people or other property.
The good news is that if you have auto, renters, or homeowners insurance, you already have some coverage.
If you hit someone with your car your auto liability insurance kicks in to pay for the damages to the car and the other person’s bodily injuries. If someone falls down your stairs and breaks their leg, or injures themselves in some other manner, your homeowners liability insurance will cover the medical bills. These are all, of course, up to a limit.
But what about everything else that is not covered by your home or auto insurance? Or the amount for which you are liable surpasses your covered amounts? This is where umbrella insurance can step in to cover the gaps that are not covered by your home and auto insurance.
If your limit on your homeowners insurance policy is only up to $500,000 and the accident which you caused leads to being a $1 million dollar lawsuit, you are going to be in trouble. About half-a-million dollars in trouble. An umbrella policy can cover that amount, but only after your home/auto insurance policy is tapped out.
This is one reason that umbrella insurance policies are inexpensive. And their price is one of the reasons you want to take advantage of an umbrella insurance policy and be covered for any possible accident.
Before you go out and purchase your 2017 party hat and shades, make sure that you have your business taken care of. As a small business owner, you know there is a lot for you to do at the end of the year. Ensure you hit the ground running in 2017 by paying attention to your business accounting and IT. Here is what you need to do for your small business before we turn the final page of 2016 and start a new chapter in 2017.