Umbrella Insurance Explained

You have a lot that’s worth protecting. While life can feel unpredictable sometimes, one thing you shouldn’t have to wonder about is whether the things that matter to you have the protection they need. That includes your family, your assets, and perhaps even your small business. Having the right insurance policies can go a long way toward securing your interests and your peace of mind.

But what if your primary insurance policy doesn’t quite cover everything you need it to? Farm Bureau Insurance of Tennessee is dedicated to providing policies that meet the unique needs of our customers. One way we do that is by offering umbrella insurance policies.

What Is Umbrella Insurance?

In our modern world, there are all sorts of liability risks you might encounter. Umbrella insurance can offer protection above and beyond your primary insurance policy, acting like another shield – or umbrella – around your family or your business. It does this by providing additional liability coverage, which kicks in if a covered event reaches the limits of your primary policy.

At Farm Bureau Insurance of Tennessee, we have two types of umbrella insurance policies: personal umbrella and commercial umbrella.

What Is Personal Umbrella Insurance (PUI)?

Personal umbrella insurance doesn’t replace your primary insurance policies. While it’s important to make sure you have the right auto, home, and life insurance coverage, you may find yourself in need of some additional liability coverage. Personal umbrella insurance can function as a safety net, so that you have sufficient protection in case of an unexpected event and high-value liability claim.

Who is personal umbrella insurance for? A personal umbrella policy might be right for you if:

• You own your home or own any rental properties

• You have significant financial assets

• You enjoy any activities or hobbies that may be considered a high liability risk, such as hunting or mountain biking

• You own any items that may be considered a high liability risk, like trampolines, pools, motorcycles, or firearms

What Is Commercial Umbrella Insurance (CUI)?

As personal insurance does for your family, commercial umbrella insurance can provide additional liability coverage on top of what your primary business policy offers. This may include general liability, commercial auto, and employer’s liability insurance. Commercial umbrella insurance can help protect your business against unexpected costs of large lawsuits that exceed the limits of your primary policy. With the right commercial umbrella policy, your business can have additional protection from legal costs that might otherwise be devastating to both your business and your personal finances.

You may consider commercial umbrella insurance for your business if it meets a few criteria. CUI could be the right fit if your business:

• Involves a lot of interaction with customers or clients

• Includes a fleet of vehicles

• Is part of an industry that possesses significant liability risks

• Involves owning or managing commercial real estate

• Has contractual obligations with elevated liability limits

Should I Get Umbrella Insurance?

If any of the above scenarios apply to you, umbrella insurance may be a value-add for your family or your small business. You don’t need to navigate the ins and outs of these policies on your own, though. Reach out to a Farm Bureau Insurance of Tennessee agent today to discuss coverage that fits your needs.