What you need to know
A single accident or lawsuit on your property can have devastating financial consequences. While your auto, homeowners, or renters’ insurance provides essential liability coverage, it may not be enough in a serious situation or litigation. That’s where an umbrella insurance policy comes in; it’s a powerful, affordable way to help protect your assets and future income.
Insurance protection is a key part of wealth management, along with financial planning, tax planning and preparation, estate planning and investment management.
A farm and ranch liability umbrella policy adds an extra layer of liability cover over and above your primary insurance limits. Should a loss exhaust your primary liability coverage, a farm and ranch liability umbrella policy can provide coverage for the excess damages.
If someone were to get hurt on your property, even if it was an accident, you could be held responsible and face a lawsuit. To make sure you are protected, first check the liability limits on your policy. Talk with your insurance agent to see how these limits can be increased and if it is needed.
Consider adding an umbrella policy to your existing policy if you engage in any of the following activities on your property:
• Drive your machinery on the road from one field to another.
• Have livestock.
• Own or use a boat, ATV/UTV, snowmobile, etc.
• Have a swimming pool or trampoline.
• Own a farm, ranch or rental properties.
• Have assets including land
• Haul crops or livestock from one location to another or to a grain elevator.
Unfortunately, accidents happen, and a lawsuit can happen to anybody. The possibility of being held liable for a large settlements or judgement is very real, simply because accidents can happen. If your livestock happen to get out, gets in the road and causes any kind of accident. A guest on your property gets hurt while looking at livestock by tripping or falling. Even a guest that is at a cookout on your property somehow gets injured.
Umbrella insurance typically cover:
Bodily injury liability: Covers medical bills, loss of income, funeral expenses and lawsuits if someone has an injury or death on your property.
Property damage liability: Covers damage to someone else’s property.
Personal liability: Covers claims like defamation, false arrest, or invasion of privacy.
Defense Coverage: These expenses include the cost of hiring a lawyer, court fees, investigations, gathering facts, filing legal paperwork and other related costs.
There are claims that umbrella insurance typically doesn’t cover. These include your own injuries, damage to your property, business losses, or intentional harm.
Umbrella insurance is surprisingly affordable, and your cost will be determined on serval factors, such as, the potential risk involved, net worth, location, etc. Reach out to your current insurance agent to have umbrella coverage added to your policy and if you already have umbrella coverage, you should be reviewing it yearly to make sure you have adequate coverage.
Brian Pahl is a 2018 graduate from Bethel University with a degree in Business Administration.
