Umbrella insurance is a valuable tool for individuals facing liability lawsuits in Buffalo, NY. These policies can help cover many of the expenses associated with lawsuits, but it’s essential to understand your policy’s details rather than make assumptions.
Legal Fees
Most umbrella insurance policies cover legal defense costs, but they may not allow you to hire just any lawyer. Typically, the insurance company will require you to choose from a list of approved attorneys. Additionally, legal fees must not exceed your policy’s coverage limits. Before hiring a lawyer, it’s crucial to consult with an agent at L & S Agency Inc. to ensure your legal expenses are covered.
Judgments
Umbrella policies often help cover judgments against you in liability or defamation lawsuits, protecting your assets. However, every policy has limitations and exclusions. For instance, claims involving malicious intent are commonly denied.
For example, if someone slips and falls on your property, your umbrella policy may provide coverage. However, if you intentionally harm someone, such as punching them, and they sue you, this is considered malicious intent, and your policy will not cover the claim.
Business Lawsuits
Another common exclusion is coverage for business liability lawsuits. Umbrella insurance is typically designed to cover personal liability, including bodily injury and property damage. These policies often supplement other insurance, like home or auto policies, once their coverage limits are reached.
However, umbrella insurance does not usually cover lawsuits against businesses. If you own a business, you’ll need a commercial insurance policy to protect your company in the event of a lawsuit.
An experienced representative at L & S Agency Inc. can help you better understand how umbrella insurance works, including its limitations and exclusions. We’ll work with you to ensure you have the protection you need. Contact us today to learn more! We proudly serve the Buffalo, NY area.
