Although you may not be aware of it, standard homeowners insurance policies, as well as auto, boat, and business coverage, are limited. The gap in coverage is why when damage or loss occurs, you may file a claim that won’t compensate you to the extent you expect. For this reason, many choose to purchase an affordable personal policy.

The ins and outs of a personal umbrella policy

Because more than eighty percent of general liability claims are related to auto accidents, any driver could face catastrophic losses without it. Consider the following examples of real risks.

• A sixteen-year-old boy was driving his father’s car. He missed the stop sign at the corner and crashed head-on into another car. The other driver sustained serious back injuries.

• A woman worked overtime for two weeks due to being overworked. She was so tired when she was driving home one night that she fell asleep at the wheel, causing her car to drift off the lane into the oncoming lane of traffic. A car saw the woman’s car coming towards it and swerved to avoid a crash. The other driver’s car crashed into the glass of the front window of a retail store. Damage included loss of property and an injured worker.

• The homeowner’s kitchen contractor was working hard to improve the kitchen area with renovations when the accident occurred: he tripped over a mound of scrap wood and seriously injured himself. Because he did not have enough personal insurance to cover his doctor and hospital bills, he sued the landlord.

The Ins and Outs of a Commercial General Insurance Policy

If you own a business, you know that there are liability risks in your field. Gaps in standard business coverage could spell financial disaster in the event of significant loss and damage. Think about the following examples to realize the scope.

• An employee claimed that her boss treated her badly and sued her for sexual harassment.

• An African American worker was not happy because his boss moved him to another department. He sued the business owner for discrimination.

• The assistant boss developed a case of carpal tunnel syndrome, which resulted in necessary surgery and a few months of occupational therapy.

• A passing pedestrian slipped on the sidewalk in front of a retail store and broke his ankle. He sued for pain and suffering, as well as related medical expenses.