What Is Umbrella Insurance?
Umbrella Insurance Coverage – Personal & Commercial Liability Protection
Umbrella insurance is additional liability coverage that goes beyond the limits of your existing insurance policies. Also known as umbrella liability insurance, it provides excess coverage over your primary policies such as auto, homeowners, farmowners, or commercial insurance.
An umbrella policy helps protect your personal and business assets by covering:
- Large liability claims and lawsuits
- Legal defense costs
- Gaps in underlying insurance coverage
- Claims that exceed standard policy limits
In today’s legal environment, liability judgments can reach in the millions of dollars. Umbrella insurance provides critical financial protection against devastating losses.
North Star Personal & Commercial Umbrella Insurance Highlights
North Star’s Umbrella Insurance Program offers expanded liability protection designed to safeguard individuals, families, farmers, and businesses.
Coverage Benefits:
- Extended Liability Limits
Coverage available in $1 million increments up to $5 million, and up to $10 million for Farm or Commercial policies - Personal Injury Coverage
Protection against claims such as:- Libel
- Slander
- Defamation of character
- Wrongful eviction
- Other exposures that may not be covered by your underlying policies
- Legal Defense Coverage
Covers legal fees and defense costs for covered claims. - Worldwide Coverage
Protection applies globally. - Optional Uninsured & Underinsured Motorist Coverage
Additional protection available for qualifying policies
Why Do You Need Umbrella Insurance?
Many individuals and business owners believe their current liability limits are enough. However, serious auto accidents, property claims, or personal injury lawsuits can quickly exceed those limits.
Without umbrella insurance, you could be responsible for:
- Out-of-pocket legal expenses
- Court-awarded damages
- Loss of personal assets
- Wage garnishment
A personal or commercial umbrella policy provides added peace of mind by protecting your lifestyle, savings, and future earnings.
How Much Umbrella Liability Insurance Is Enough?
The right amount of umbrella coverage depends on:
- Your total assets
- Your income and future earning potential
- Your risk exposure (vehicles, properties, recreational equipment, business operations)
Large jury verdicts and multi-million-dollar settlements are more common than ever, which makes higher liability limits an important safeguard for your financial future. Please visit with your North Star agent for details on amounts available to you and how to qualify.
Umbrella Liability – Example Losses
Home
- Example 1 – The insured neglected to manage their property, resulting in a rollerblader tripping on uneven concrete sustaining severe head injuries and permanent brain damage.
- Example 2 – The insured’s child is angry at their teacher for giving them an F grade, making them ineligible to play sports. The child begins spreading rumors about the teacher and posts false statements on social media as fact. The teacher, who suffers mental anguish, loss of work and a damaged reputation, sues the family for damages.
Auto
- Example 1 – The insured’s teenage driver is distracted doesn’t see the traffi c light turn red or the stopped cars ahead. The teenager runs into a stopped car resulting in a several car pile up with serious injuries to others.
- Example 2 – The insured slides though a stop sign on an icy day, hitting an elderly couple crossing the road.
Farm
- Example 1 – The insured is driving their oversized combine down a two lane road. While talking on their phone, they accidently cross the center line and collide with an oncoming car.
- Example 2 – The insured has their child and their friend help pick rocks and allows them to go out in the field unsupervised. The children roll the ATV and the friend gets their arm trapped under the ATV and needs to have their hand amputated.
Commercial
- Example 1 – The insured owns and operates a special event center. While a large group is attempting to take a photo on the second story deck, it gives way to the people’s weight, collapsing, and injuring several people.
- Example 2 – The insured owns and operates a small auto repair shop. An employee is distracted by a phone call while rotating a customer’s tires, forgetting to tighten one of the tires’ lug nuts. The customer leaves with vehicle and has a major auto accident as a result.