What is
Umbrella Insurance
Umbrella insurance is extra liability coverage that kicks in when the limits of your existing policies (home, auto, recreational vehicle, or business) are exceeded. It helps protect your finances, assets, and future by covering outstanding costs — often in situations that could otherwise lead to devastating out-of-pocket expenses.
Personal Umbrella Insurance
Why You Might Need It
Even the best home or auto insurance may not be enough to cover a major accident or lawsuit. Personal Umbrella Insurance provides an extra layer of liability protection — typically starting at $1 million — to protect your savings, property, and future earnings.
Common Situations Covered
- Medical Costs Beyond Your Limit – You cause a serious car accident with $700,000 in injuries, but your auto policy covers $500,000. Umbrella coverage can pay the remaining $200,000.
- Libel or Slander Lawsuits – Helps cover settlement costs, attorney fees, and legal defense.
- Injuries on Rental Property – A tenant is injured due to a safety issue; coverage applies after your landlord insurance limit is reached.
- Dog Bites, Accidents, and Property Damage – Provides extra coverage in scenarios where your existing liability limits are exhausted.
Key Benefits
- Additional $1M+ protection beyond home, auto, and other policies
- May cover claims not included in your primary policies
- Worldwide protection for you, your spouse, and household members
- Includes legal defense costs
Commercial Umbrella Insurance
What It Does
For business owners, a Commercial Umbrella Policy adds liability protection beyond the limits of your business insurance. It’s designed to cover large claims or lawsuits that could otherwise threaten your company’s financial stability.
Coverage Examples
- A customer is injured at your business, and medical/legal costs exceed your liability limit
- Defamation lawsuit from a wrongly accused customer
- Employee-caused auto accident while on company business
- Property damage caused by your operations that exceeds coverage limits
What’s Covered
- Commercial General Liability – Bodily injury, property damage, personal & advertising injury, defense costs
- Garage Liability – For auto service businesses (repair, detailing, roadside assistance, etc.)
- Business Auto Liability – Owned, non-owned, and hired vehicles
- Employer’s Liability – Lawsuits from employee workplace injuries
Why Businesses Choose It
- More cost-effective than increasing primary policy limits
- Protects both business and personal assets from large settlements
- May meet contractual requirements for excess coverage
Not Covered
- Uninsured/underinsured motorist claims
- Employment-related practices liability
- Pollution damage
- Property in your care, custody, or control
- Professional services (unless specifically endorsed)
Farm & Ranch Umbrella Insurance
Purpose
Farm and Ranch Umbrella Insurance provides extra liability coverage above your existing farm, home, and auto policies — protecting your land, equipment, and livelihood.
When It’s Needed
- Driving farm machinery on public roads
- Owning livestock
- Operating boats, ATVs, or snowmobiles
- Having pools, trampolines, or rental properties
- Transporting crops or livestock
What’s Covered
- Bodily Injury – Medical costs, loss of income, funeral expenses for others
- Property Damage – Destruction of someone else’s property
- Personal Injury – Libel, slander, false arrest, invasion of privacy
- Defense Costs – Legal fees, court costs, and related expenses
Example
If your farm policy covers $1 million in liability and your umbrella adds another $1 million, you have $2 million total coverage for a single claim.
Do You Have Enough Coverage?
Arizona requires every driver to carry a minimum level of auto insurance, but in many cases those limits aren’t enough to fully protect you. Medical bills, lawsuits, or repair costs can quickly exceed the state minimums, leaving you personally responsible for the difference.
At Danilovic Agency, we go beyond the basics — helping you meet state requirements while also customizing a policy that truly fits your needs and budget.