The Role of Umbrella Policies in Accident Insurance

Many insurance policies perform two important functions in providing a way for the help needed by injured parties and protecting the assets that people involved in accidents own. This type of protection is referred to as liability coverage. For people who are involved in lawsuits, the relevant type of liability coverage you hold can sometimes compensate the injured party without your required involvement. Having adequate liability coverage helps to not just protect assets but also maintain financial stability.

Many people with substantial assets find it important to obtain additional protection in case of an accident, which is why some people feel umbrella insurance or excess insurance is beneficial. These policies extend over other types of insurance like car or homeowner insurance and also cover any gaps or spillover left by these policies. If you are sued for injury or property damage that exceed the limits of your liability coverage, umbrella insurance picks up where the other policy stops. To purchase umbrella insurance, a person must own other relevant policies that contain substantial liability coverage. Many people and businesses benefit from consulting with a knowledgeable attorney to determine if an umbrella policy is right for them.

What is Commonly Covered by an Umbrella Policy?

Umbrella policies often provide for coverage in several situations, which include the following:

• Certain types of lawsuits including defamation, false arrest, malicious prosecution, slander, and wrongful eviction
• Damages to property
• Injuries caused by an accident

What is Not Covered by an Umbrella Policy?

Unfortunately, there are some types of damages that are not covered by insurance policies, which include the following:

• Business losses that include situations in which a person owns a business and another party is injured in the course of doing business with the company
• Exotic vehicle liability, which includes vehicles that are frequently not protected by insurance, like planes.
• Help that is hired to assist with projects is frequently not covered by umbrella policies when accidents occur.
• Intentional damages, which include situations in which a person is purposefully injured or his or her property is purposefully damaged

Contact a Knowledgeable New Jersey Accident Attorney

For people who only carry a minimum amount of insurance or people who do not carry insurance, it has become critical to purchase an umbrella policy. When insurance options are exhausted, these people are frequently left to pay for medical expenses and resulting damages on their own. As a result, if you or a loved one is harmed in an accident and need assistance with an insurance policy, the help of seasoned legal counsel can prove invaluable. Our legal counsel is well versed in many different aspects of personal injury cases and can help you navigate the many complications that arise when accidents occur. We are also committed to making sure that you obtain the compensation to which you are entitled. Contact Ferrara & Gable today for a free consultation.