Exclusions of Umbrella Insurance
Umbrella insurance is designed to provide an extra layer of liability protection beyond standard home, auto, and other personal insurance policies. However, it’s important to understand that there are specific exclusions to this type of coverage. Here are some common exclusions:
- 1. Intentional Acts: Claims arising from intentional or criminal actions are generally excluded from coverage.
- 2. Business Liabilities: Umbrella policies do not cover liabilities related to business activities, including any injuries or damages occurring on a business property.
- 3. Contractual Liabilities: Liability assumed through a contract is typically not covered unless it’s specifically mentioned in the policy.
- 4. Employment-Related Claims: Claims related to employment practices, such as wrongful termination or discrimination, are usually excluded.
- 5. Claims from High-Risk Activities: Risks associated with certain activities, like using a motorcycle or certain watercraft, may require additional coverage or may be excluded altogether.
Understanding these exclusions is crucial in determining how much protection an umbrella policy can provide for your unique needs. Always review the details of your coverage with your insurance agent.