Umbrella Insurance

Is an Umbrella Insurance Policy the Right Move for Your Finances?

Umbrella insurance policy

Your home insurance, auto insurance, and commercial insurance policies form the foundation of your financial protection strategy. Sometimes, however, these contracts may not be enough to fully cover your assets. An umbrella policy from Aspen Gold Insurance Brokers is the best way to add extra coverage to all aspects of your financial life. How can you be sure an umbrella policy is right for you?

  • You recently invested in a business. Starting or expanding your business leaves you vulnerable to cash flow problems. If a covered event triggers your commercial insurance policy, your payout may not be enough to help you pay off loans for new equipment and necessary replacements. An umbrella policy would give you extra cash to help cover other related expenses.
  • You have very little personal savings. If your emergency fund is a little light, an umbrella policy can help you take care of expenses that aren’t covered by the payouts from your auto or home insurance policy. Even if your savings account is full, it’s a good idea to use the money from your umbrella policy and protect your nest egg.
  • You work with the public in a professional capacity. Providing personal services to the public leaves you open to potentially expensive litigations. A professional liability plan helps you pay for lawyers and other court-related costs. However, an umbrella policy ensures that you never lack the funds you need for a proper defense.

An umbrella insurance policy is a low-cost protection plan that can be applied to every aspect of your insurance portfolio. The experts at Aspen Gold Insurance Brokers can help you customize a personal or commercial umbrella insurance policy that perfectly fits your Colorado lifestyle.

How to Cover a Business for a Cyber Attack

Commercial general liability insurance

Cyber attacks continue to be a major problem for American businesses. Statistics show, in 2018, the average cost to a business for the damages from a Cyber attack was $2.4 million. That is a huge amount of money. The scary thing is that this kind of attack can happen at any time without any warning whatsoever.

Insurance for A Cyber Attack

Cybersecurity insurance is a type of special insurance coverage that can be found under the category called umbrella insurance. It can be a rider on an umbrella insurance policy that also covers other risks.

Umbrella insurance does two basic things. It extends the policy limits of other insurance coverage that is also in place and it covers things that other policies do not cover. Work with your agent at Aspen Gold Insurance Brokers, serving Broomfield, CO and the nearby communities, to make sure you have adequate insurance for this risk.

Umbrella Insurance for Cyber Attack

Umbrella insurance is an effective way to cover the big risks that can destroy a business and wipe out the net worth of the business owners. It is more cost-effective to have umbrella insurance to cover claims that are in excess of the policy limits of other coverage than it is to raise the policy limit of each separate insurance policy.

Special Cyber Security Risks

Businesses that conduct online payment-processing transactions, such as accepting credit cards for sales are the kind of companies that are likely to have a cyber attack. Another type of vulnerable business is any health care organization that manages the medical records of individuals. They must follow HIPAA rules for security that are very strict. Fines and penalties for violating HIPAA rules can be multiple millions of dollars.

Ransomware

A new form of malware called ransomware is being deployed more frequently. Ransomware works by a hacker inserting a virus or malware into a system and then locking the data content by encryption. A demand is made for the company under attack to pay a ransom to get access to their own data files.

Cyber attacks are not going to go away. In fact, they are getting more frequent. Call 720-600-7470 to talk to your agent at Aspen Gold Insurance Brokers in Broomfield, CO to get a quote for umbrella insurance that covers the risk of cyber attacks.

FAQ’s About Umbrella Insurance

what is umbrella insurance

There are many frequently asked questions (FAQ’S) about umbrella insurance. Maybe you think, I am covered, but Umbrella Insurance can assist in closing gaps in cover. Perhaps the most frequently asked is….

Just What Is Umbrella Insurance?

It’s called “umbrella” insurance because it covers so much. It’s a supplement to basic liability policies such as home, auto, or renters.

Why Is It Important?

Is your home important? This plus your car, investments, and retirement fund are all important accounts that need to be secured. If you’re ever sued or are short on basic insurance, umbrella insurance is perfect for that rainy day. Should anything unfortunate happen, umbrella insurance is the thing standing between you and financial ruin.

How Much Should I Have?

Ask yourself the following three FAQ’s About Umbrella Insurance. How risky is my life in general? What is the net worth of my assets? What would happen if I were to lose my income? An agent of Aspen Gold Insurance Brokers of Broomfield, CO will be happy to help you figure out how much insurance you need.

What Does It Cover?

Umbrella insurance will cover the cost of medical bills or liability claims should you be found at fault for another’s injury or property damage. If you are a landlord, umbrella insurance is essential for covering liability claims made on your property. If you are sued for libel, slander or otherwise causing mental anguish, umbrella insurance is there for you.

How Does It Work?

Once your basic liability limit has been maxed out, umbrella insurance can give you that extra you need so that you won’t pay much, or perhaps anything out of pocket. Should you be in a business on the risky side and already have general liability insurance, umbrella insurance increases your coverage limit.

Have more questions? Contact an agent at Aspen Gold Insurance Brokers of Broomfield, CO.

Umbrella Insurance Policy vs Irrevocable Trust

Umbrella Insurance

When you make a purchase for an umbrella insurance policy, it is imperative that you understand how this type of insurance works. In and of itself, umbrella insurance does not provide any type of coverage. Instead, it provides coverage on top of the insurance you already have. For example, if you are in an auto accident and your insurance is exhausted after paying $50,000, your umbrella policy may provide an additional $50,000. Your regular insurance, however, would have to be exhausted first before your umbrella policy could be tapped into.

If you acquire money through an umbrella policy, you may be required to pay taxes on it. If a lawyer helps you get the money, you may even owe him or her money out of the funds you acquire. With an irrevocable trust, though, your money cannot be touched by anyone but you. This is why it is important to understand the difference between an umbrella policy and an irrevocable trust.

There are so many things to know about an irrevocable trust and an umbrella insurance policy. It is always of the utmost importance that you speak with a qualified insurance agent to help determine which type of policy will be best for you. Some people find that they benefit from having both types — an umbrella policy plus an irrevocable trust. Contact an agent with Aspen Gold Insurance Brokers serving the Broomfield, CO area today. We can help you determine all of your insurance needs and help you sort through the many different types of policies. It is our goal to ensure you are covered with the best insurance possible.

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