What is Umbrella Coverage?

A personal umbrella policy increases your existing liability coverage to provide you with more protection in situations where you might be held liable for an accident or occurrence. This unique policy requires your Personal Liability to be insured with BMI, but it also helps protect you and your assets that are insured by other carriers. If you have additional coverage outside of BMI, our umbrella product will lay over your liability for each qualifying risk. 

A BMI umbrella policy offers up to four times the liability limit on a homeowner policy. You may be wondering how on earth you could possibly need that much coverage. We’re glad you asked.

Why Do I Need an Umbrella Policy?

We never intend for trees on our property to fall on the neighbor’s car or for others to injure themselves while visiting our homes. Unfortunately, these examples are among the top five most common liability claims. Without sufficient liability coverage, you could be sued, leaving you responsible for paying the medical bills of a door-to-door salesman who slipped on your front porch. With each new day comes an endless number of potential mishaps, so why not make sure you are prepared for anything?

Not only is it important to factor in your current assets when setting liability limits, but it is also imperative that you consider all future assets you plan to obtain. A medical student might be tempted to choose low liability limits, due to their low income and student-loan debt, but don’t forget that you could be sued for future earnings, as well.

How Much Does an Umbrella Policy Cost?

The concept of liability can be overwhelming, but the cost of protecting your assets is very much worth the coverage it provides. An umbrella policy provides secondary coverage, meaning it is intended to only kick in when the primary policy-limits have been reached. Because of its fail-safe nature, the premium for an umbrella policy is very reasonable. Adding a maximum-limit umbrella to your existing BMI policy may only increase your annual premium by as low as a couple hundred dollars.*

Does BMI Also Offer a Farm Umbrella?

Farm insurance is our bread and butter, and farmers experience several risks—from operations to livestock to premises. With the high acreage that most farms sit on, it is important to make sure your risk is transferred to an insurance carrier with high liability limits. BMI offers farm umbrella policies to make sure your biggest worry is getting those farm fresh-eggs on the table in time for family breakfast. 

What is the Difference Between Umbrella Coverage and Excess Liability?

In addition to our umbrella liability, BMI also offers excess liability. This coverage extension increases the liability limits set by your farm or commercial policy, leaving you with more coverage for the same risks than you had before. Small-business owners assume a lot of risk due to the foot traffic, employees, and tools that go into making the business run smoothly. When your biggest worry is protecting your customers from freak accidents, you are not able to offer them the best service possible. Let BMI assume the risk for your business’s visitors by adding excess liability to your commercial policy.  

Depending on the risks your farm is exposed to, ask your BMI agent if an excess farm liability policy is right for you. Similar to commercial excess, this coverage will simply extend the limits of liability set by your farm policy with BMI.  

With all of these coverage options at such a reasonable price, there is no reason not to add this extra padding of protection to your existing policy. Shield your livelihood from its liability risks by adding umbrella or excess liability coverage to your policy, today!