Category Archives: Umbrella

Why does your business need Commercial Umbrella Insurance?

What is Commercial Umbrella Insurance?

Commercial Umbrella Insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.

When an insured is liable to someone, the insured’s primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).

Commercial Umbrella Insurance is similar in that it pays after an underlying primary policy is exhausted, but is different in that it  normally applies to only one underlying primary policy and covers only those losses that are covered (up to policy limits) by that primary policy.  For example, if the primary policy does not cover liability due to pollution, the excess policy does not either. But an umbrella policy may cover pollution liability from the first dollar in addition to liability of other kinds that is simply beyond the primary policy’s limit.

If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.

What is Excess Liability Coverage?

This coverage provides extra liability limits over an Umbrella policy. This coverage typically follows the terms of the first underlying insurance policy.

Who needs Excess Liability Coverage?

Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, worldwide presence, significant public exposure.

Talk to Penny Hanley & Howley Co. Inc. today about your Connecticut Small Business needs and we can advise you what kind of liability coverage you need to protect yourself and your company. Working with Connecticut Small Businesses is our specialty. Call us for more information at 860-694-2721.

Protecting YOU is our Job

How much umbrella insurance is right for you?

umbrella insuranceHow much umbrella insurance is enough for me? So we came across a great article from Foxbusiness that does a great job answering this question.

When people think of umbrella insurance, they think of policies that will cover them against large lawsuits that exceed their auto insurance liability limits for car accidents or their home insurance liability limits for home injuries.

But an umbrella policy is much more than extra coverage. The better policies protect you from lawsuits related to activities that aren’t covered by automobile or homeowners policies. Those activities might involve vacation rentals of boats, jet skis, snowmobiles or other recreational vehicles. The policies also might cover liability assumed in contracts, such as a wedding reception contract in which you agree to be responsible for any injuries to guests, even if you don’t cause those injuries. A good umbrella policy can cover these and many more liability risks for which you may not have coverage under your automobile or home insurance policy.

A personal umbrella insurance policy is by far the best buy in the insurance business. A $1 million policy will cost you between $150 and $200 a year. Where else can you buy $1 million worth of anything for that price? Each additional million dollars’ worth of coverage will cost you about $100 a year. For that little amount of money, you can afford to be well-protected.

You asked for guidance on how much umbrella liability coverage to buy. Considering the bargain price, buy $1 million more than you think you’ll need. Just as important, make sure to buy an umbrella policy that covers the liability insurance gaps in your personal life. An insurance agent who really knows the coverage idiosyncrasies of umbrella policies can identify those activities in your life that are not already covered and help you select an umbrella insurance policy that will protect you from potentially uninsured lawsuits.
Would you like to get a quote for an umbrella policy?  Either give us a call at 860-684-2721 or email info@pennyhanley.necoxmailPenny Hanley & Howley Insurance.  Protecting YOU is our Job.

What is Umbrella Insurance?

Umbrella insurance refers to a liability insurance policy that protects the assets and future income of the name insured in addition to his or her primary policies. It is distinguished from excess insurance in that excess coverage goes into effect only when all underlying policies are totally exhausted, while umbrella is able to “drop down” to fill coverage gaps in underlying policies. Therefore, an umbrella policy can become the primary policy “on the risk” in certain situations. The term “umbrella” refers to how the policy shields the insured’s assets more broadly than primary coverage.

The term “umbrella” is used because it covers liability claims from all policies underneath it, such as auto insurance and homeowners insurance policies. For example, if the insured carries an auto insurance policy with liability limits of $500,000 and a homeowners insurance policy with a limit of $300,000, then with a million dollar umbrella, the insured’s limits become in effect, $1,500,000 on an auto liability claim and $1,300,000 on a homeowners liability claim.

Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies.

At Penny Hanley & Howley Insurance we can offer you this option of Umbrella Insurance.  Give our office a call for more information.


Commercial Umbrella Insurance

Just as personal umbrella policies are available to cover the catastrophic liability exposures of personal risks, high-limit Commercial Umbrella policies are designed to provide catastrophic liability coverage for business risks. Because the umbrella policy is not designed to handle usual or everyday exposures, the insured must have underlying liability coverage, such as Commercial Auto or Commercial General Liability coverage, before an Umbrella policy will be issued.

A commercial umbrella policy provides coverage in three types of situations:

1. The policy limits applying to a loss under an underlying policy have been exhausted.

2. A loss is excluded under an underlying contract but not excluded under the umbrella (the insured must first meet the retention limit)

3. Previous losses reimbursed under an underlying policy have reduced its aggregate limit so that a subsequent loss is not fully covered.

If you own a business, it is a wise decision to have an umbrella policy because if something were to go wrong, you’d have peace of mind knowing you’ll be covered.

Visit our website to get a free quote.

CT Umbrella Insurance

Some insureds need more extensive liability coverage than can be provided by personal lines policies. This need can be met through an umbrella policy which has two important purposes.

1. Provide additional liability insurance over and above the basic coverage provided by underlying liability insurance.

2. Cover some losses excluded by the underlying liability insurance.

(Coverage limits for a personal umbrella policy range from $1 million to $5 million)

Excess Liability Coverage

Let’s see how a personal umbrella provides excess liability coverage. Let’s assume you invited a friend over to your house and he trips over your kid’s toys and injures himself. His medical expenses total $150,000 and your home insurance covers only $75,000 for liability coverages. After your home insurance liability maxes out, the umbrella kicks in (if you have it attached with your home insurance policy). The umbrella policy will pay the other $75,000 so it doesn’t come out of your pocket.

Same thing applies for auto insurance. If you have an umbrella policy attached to your auto insurance and someone gets injured in an accident because of your negligence, your auto insurance liability will cover its maximum amount possible and then the umbrella policy will take care of the rest.

(NOTE: The insured must identify any underlying liability insurance  to the insurer before an umbrella policy is issued.)

Coverage for Excluded Losses

A personal umbrella may also cover losses that are excluded by the underlying policy. For this type of coverage, the insured must select a retention limit. Retention limits work like deductibles because they represent the amount of loss the insured must cover out of pocket.

Umbrella policies prices vary depending on the person. Factors such as how many cars you own, family members, age and among other things count so call your local agent to find out if an umbrella policy is right for you. You can also give us a call at 860 684 2721 or visit our website for a quote.