Are You Under Insured? Understanding Why You Must Have an Insurance Umbrella!

Written by on 10/7/2016 9:19 AM in , , , . It has 0 Comments.

A stack of money!  The only question you need to ask yourself is this.  If you or your employee hurt someone, do you want to pay for that from your stack of money?  Or do you want your insurance company to pay for it from their stack of money?   If you want your insurance company to be the one paying.  From what I see everyday I will bet you that you don't have enough insurance to cover your business, farm or dairy if you or your employees hurt someone.   Unless you are already a GDI client.  Call Grant Davis GDI and let me help.  You will be surprised how reasonably you can get the right coverage and protect your assets!  888-991-2929 ask for Grant.

First let’s start with talking about what an “Umbrella” is as it pertains to insurance.  An umbrella is a extra layer of liability insurance that goes over your home, autos, cabins, boats, and other toys.   For business owners an umbrella goes over their workers compensation and general liability insurance.

 

I have been working as an insurance broker for about 37ish years now.  Long enough to have lost count!  I have seen companies come and go and met with clients many times after the fact.  By after the fact I mean after they have sustained a loss that is larger than they have insurance for.

I can remember the first client I met back in the early 80’s that was in the process of selling of the rentals they had purchased to fund their retirement.  They were in their late 60’s and retired, but had gotten into a car accident with a motorcycle and  didn’t have enough insurance and no umbrella (that extra layer of insurance to protect them from the larger losses).  They lost everything including their home.

I can also recall meeting with business clients before they had losses, and seeing that their current broker didn’t understand the basic concepts of risk management, and or didn’t care enough to make sure they had adequate umbrellas.  I can think of many cases to share with you, but one strikes my right now.  They had $1mil limit on their company cars, and a $1mil umbrella.  Their net worth was in the 8 figure range so they would be considered well off.  We raised the umbrella to $10,000,000.  A few years latter one of their employees driving to a job site caused a major car accident, killing and disabling others in their cars.   One of my proudest days was when I met with the owner of this business and he thanked me for saving his business.  Had he had the small limits the other broker had given him he would have lost everything as this loss was well over the $2million dollar limit he had prior to meeting with me.

With all the clients GDI has each year we have clients that have large losses.  It is just a function of having a lot of clients.  Also we see losses around our community that are serious, So we are always reminded of the importance of having the right limits of liability.

One of the hardest things I ever have to do is get a call from a business or farmer that has had a large loss and they realize they are under insured.  I go speak with them about what they should have had, and start talking about asset preservation techniques.

What should you do right now?  Just call me and let’s talk about protecting your home, business and estate.   The funny thing is the last one I just completed was a week ago.  We redid everything for them, and while it doesn’t happen every time we raised their umbrella 20 times what it was, earned premium credits for safety programs and risk reduction techniques and actually got them the insurance they should have had for less than they had been paying!  The fun part for me is we did it with the same insurance company they were already insured with!  That’s right!  If you do the work to reduce risk, and get the right limits many times we can cut your costs at the same time.   Now most of the time it may cost a little more to get the right limits of insurance.  But compared to losing everything, and what you pay for all the basic policies you have I do mean an umbrella can cost “a little” more.

Just call right now 209-634-2929 and ask for Grant!

 

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