| NYC Business Group
What Liability Claims Require Umbrella Insurance Coverage?
Sometimes, you take all the steps to protect yourself and your business from insurance claims that might push you to bankruptcy. However, that is not how accidents work. You could be volunteering at the local shelter, only to end with a lawsuit due to negligence.
In that case, there is very little your general liability insurance cover can do for you. And that is why you may need umbrella insurance coverage.
Basics of Umbrella Insurance
An umbrella insurance coverage works to cover the extra cost you may have to incur above your insurance limit. If you have home or auto insurance, your claim or settlement exceeds what the insurance can pay.
It also covers defense costs when you end up in court due to damage you caused on another person's property or personal injuries. 
Basically, you need to have an existing insurance cover for the umbrella to provide extra protection. It could be a homeowner's, auto, or commercial coverage.
If you already have your base insurance coverage, what are some of the claims that require umbrella insurance coverage? Our Agency is here to ensure you are covered fully, give us a call today!
Claims That Umbrella Insurance Covers
Beyond the base home or auto insurance, umbrella insurance covers:
1. Libel, slander or demafamation
If you post something defamatory about someone else's business or personal life, and they sue you, then umbrella insurance coverage can help pay for the legal and settlement fees.
2. Invasion of privacy
Say you run a business and use your customer's personal information to force a marketing campaign without their consent. They could sue for invasion of privacy. It could also be painting them in bad light or publicly exposing their likesness and private facts. Then you would need umbrella insurance for the legal fees and settlement that exceeds your general liability insurance.
3. Board-related issues
If you work on a board of directors of a charity organization, then you expose yourself to liability claims of negligence or inappropriate conduct. Even though the body you represent is willing to settle, it may be more than you are ready to pay out of your pocket, hence the umbrella insurance.
4. Accidental injuries
When someone covered under the home or auto insurance causes a severe accident, that the medical fees or settlement exceeds the base insurance, umbrella insurance is essential to fill up the balance. A good example is when your son hits the baseball too fast that it crushes someone's eyeball.
5. Teen drivers
With teen drivers causing 10% of all accidents on the road, you should have umbrella insurance coverage to offset the premiums you pay for your auto liability insurance. The idea here is that a teenager makes your insurance premiums too expensive. So, instead of paying high monthly premiums, you take up an extra insurance cover.
6. Dog bites
You need umbrella insurance coverage when your dog bites someone and the medical expenses are beyond the homeowner's policy.
7. Psychological trauma
When you are at fault in an accident resulting in psuchological trauma, you may have to pay for the excess pain and suffering. These claims are expensive. So, it is very likely that the claim will exceed your primary policy. Hence the umbrella insurance.
8. Wrongful eviction
When you evict people from your rental property without following the proper procedure, you may end up in court facing wrongful eviction claims. If you need to pay a settlement and the homeowner's policy is not enough, you will need umbrella insurance.
9. False imprisonment/detention
Umbrella insurance coverage can cover the additional liability when charged with malicious prosecution and unlawful detainment. 
Final Thoughts
When getting umbrella insurance, you need to understand your specific liability coverage needs. To clearly understand this, you need an expert working with you to explain the details of your protection plan. That is what NYC Business Group Agents do. Contact these professionals and start understanding your insurance coverage.