Watch Those Assumptions

Understanding Excess vs. Umbrella Coverage


By Kitti Peters, The Reschini Group

Assumptions can be tricky. You really need to slow down, look at the situation, and make sure you fully understand all the signals before taking action. Otherwise, you could be facing a problem down the road.

Even things that would appear on the surface to be so obvious, so apparent, so unmistakable, can turn out to be the very things that trip you up later.

A great example of the dangers of assuming? Appreciating the difference between “excess” and “umbrella” insurance coverage. They may sound synonymous – and it’s easy to make that mistake, as many people do at first blush – but important differences, in fact, exist.

The danger arises in getting caught with a policy that’s restrictive, meaning you may not have the protection you assumed.

In its most general definition, an “umbrella” policy can extend to coverage that includes general liability, automobile, and employees – but it is not automatically all-encompassing. Again, generally speaking, an “excess” policy provides additional coverage to specified areas of exposure.

Each option has its own specific features and benefits, its own limitations and guidelines. But worse than possibly simply misunderstanding what each coverage option provides, acting on this faulty assumption could prove costly should an event require such a policy to become engaged. In other words, you may not be as well covered as you thought, because the rules of engagement are not necessarily as simple as they might sound.

Assuming the difference between “umbrella” and “excess” coverage may, at first glance, sound logical, but never assume. Be sure. Let the experts at The Reschini Group help you make the best choice for your particular situation, so that you have the broadest possible coverage necessary.

Copyright 2016 The Reschini Group

The Reschini Group provides these updates for information only. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.