July 3, 2019

Umbrella & Excess Liability: What limit do you choose?

We are often asked, “What limit of coverage should I have?” While there are several factors to consider when making this decision, we suggest considering these top three:

  1. What assets am I trying to protect?
  2. Is there someone outside of our company that requires specific limits of coverage?
  3. What is my attitude toward taking/retaining risk?

To help you sort through these factors, you’ll want to reflect on the following:

  1. What are my assets? They not only include physical property and money you have now but could also include future earnings. You may not have a lot of assets at the present time but if you cause injury to someone they could sue you for everything including garnishing your future earnings.
  2. Someone requires specific limits or coverage? Sometimes you might have a client or bank that requires you to have specific liability limits of coverage. When this is the case you need to meet those requirements in order to conduct business with your client or get a loan.
  3. What is my attitude toward taking risk? Everyone has a different attitude toward risk. Some people want to transfer or avoid risk at all costs while some people are risk takers and are comfortable with retaining risk. Depending on what your attitude towards risk is, you may desire high limits or basic limits of coverage.

Here at Teague we’ll help you work through your tolerance for risk and can provide you with Umbrella or Excess Liability quotes as a part of your insurance solution. Please contact anyone on your service team to discuss your current insurance limits and the additional options available for your business.

As always, thank you for your trust in Teague. We look forward to hearing from you.