Umbrella Insurance

Umbrella insurance is designed to provide an extra layer of liability protection beyond the limits of your existing insurance policies. It helps protect your finances if a major claim or lawsuit exceeds the liability coverage in policies such as home, auto, or business insurance.

At Colonial Insurance Agency, we help Wisconsin residents and business owners understand when umbrella insurance makes sense and how it can strengthen their overall insurance protection.

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Develop A Business Insurance Plan You Can Rely On

Property

Commercial property insurance protects your assets in the event that they are stolen, damaged or destroyed in a fire or natural disaster.

Liability

No matter the size and nature of your business, there are always uncertainties. We will work with you to determine your business risks and put together an insurance package that ensures protection.

Auto

Whether you have one vehicle or a whole fleet, we can help you implement custom coverage that will protect your business and personal assets from the additional exposure that commercial vehicles bring.

Worker's Comp

Workers’ compensation insurance covers employees injured on the job or in auto accidents while on business. It also covers work-related illnesses.

Crime

Every company is a potential target for crime. We’ll work with you to design insurance coverage that helps minimize your risk and protect your business.

Umbrella

Commercial umbrella insurance is designed to supplement your existing insurance policies, giving you an additional layer of protection for your business.

Errors & Omissions

Errors and omissions liability insurance protects any business that gives advice, makes educated recommendations, designs solutions or represents the needs of others. We’ll offer coverage that ensures that one simple mistake does not cause financial ruin.

Employment Practices

As an employer, you face a rising tide of employment practice litigation with various allegation issues. We will work with you to help you assess and manage your risk proactively.

Directors & Officers

Directors and officers liability insurance covers directors and officers for claims made against them while serving on a board of directors and/or as an officer. We work with you to protect your organization’s important asset: your senior leadership.

What Does Umbrella Insurance Cover

Many people ask what umbrella insurance covers when considering this type of policy. Umbrella coverage primarily focuses on liability risks that exceed the limits of underlying policies.

Common scenarios that may be covered include:

Bodily Injury Liability

If someone is injured and your primary insurance policy reaches its limit, umbrella insurance may help cover additional medical expenses, legal fees, or settlements.

Property Damage Liability

Umbrella insurance can provide protection when property damage claims exceed the limits of your underlying liability coverage.

Personal Liability Claims

Certain lawsuits involving personal liability may also fall under umbrella coverage, including claims related to defamation, libel, or slander.

Legal Defense Costs

Legal fees can become expensive during lawsuits. Umbrella policies may help cover legal defense costs if a liability claim is filed against you. These protections form the foundation of personal umbrella insurance coverage, which helps safeguard your financial assets when major claims arise.

These protections form the foundation of personal umbrella insurance coverage, which helps safeguard your financial assets when major claims arise.

Why Umbrella Insurance Is Important

Standard insurance policies come with coverage limits. In serious accidents or lawsuits, damages may exceed those limits. If that happens, the policyholder could be responsible for paying the remaining costs out of pocket.

Umbrella insurance helps fill this gap by providing extra liability insurance protection beyond the limits of your existing policies.

For example, if an accident results in significant medical bills or legal damages that exceed your auto or home insurance coverage, umbrella insurance can help cover the excess.

This type of policy is often used by individuals with valuable assets, homeowners, landlords, and business owners who want to reduce financial exposure to large claims.

Who Should Consider Umbrella Insurance

Umbrella insurance may be beneficial for individuals or businesses with higher liability risks. This includes people who:

Own homes or rental properties
Have significant savings or investments
Frequently host guests or events
Own vehicles or recreational equipment
Operate a small business

Business owners may already carry liability coverage through policies such as Small Business Insurance or Wisconsin Insurance for Businesses, but umbrella insurance can provide additional protection if claims exceed those policy limits.

Umbrella Insurance For Business Owners

Many business owners assume their business structure alone protects them from liability claims. However, understanding Do I Need Insurance for an LLC can clarify that forming an LLC does not eliminate the need for insurance protection.

Umbrella insurance can provide an extra layer of protection above business liability policies, helping shield personal and business assets in the event of a major lawsuit.

Business owners may also evaluate their coverage through resources like Do I Need Umbrella Insurance to determine whether additional liability protection is appropriate.

Umbrella Insurance Policy Cost

The umbrella insurance policy cost varies depending on several factors related to the policyholder’s risk profile.

Insurance providers may evaluate:

Number of properties owned
Number of vehicles insured
Existing liability coverage limits
Claims history
Business activities or professional risks

Because umbrella policies extend existing coverage rather than replacing it, they are often relatively affordable compared to the amount of additional liability protection they provide.

How Umbrella Insurance Works With Other Policies

Umbrella insurance does not replace your existing policies. Instead, it works alongside them.

For example:

A liability claim occurs.
Your primary insurance policy covers damages up to its limit.
If the claim exceeds that limit, umbrella insurance helps cover the remaining amount.

This structure allows policyholders to extend their liability protection without needing to dramatically increase the limits of every individual policy.

When To Review Your Umbrella Insurance Coverage

Umbrella insurance should be reviewed whenever your financial situation or liability exposure changes.

You may want to reevaluate your coverage if:

You purchase a new home or rental property
Your income or assets increase
You start a business or expand operations
You add additional vehicles or drivers
Your lifestyle changes significantly

Regular insurance reviews help ensure your liability protection keeps pace with your growing financial responsibilities.

What Our Clients Are Saying

Colonial Insurance Agency is committed to providing our clients with the exceptional service that they deserve.

Dan provides exceptional service and expertise! He tailors the perfect coverage to fit needs and budget, explaining everything clearly and promptly addressing any questions. I highly recommend him for anyone seeking reliable insurance guidance.

We have been with Colonial Insurance for many, many years and have received nothing but five-star service. Don and Dan MacLeod and their staff have been amazing to work with. Our two children are also with Colonial and are very happy as well.

Jack Larsen has done a great job quoting everything from auto, home, and business insurance for me and my family. He is professional, knowledgeable, and prompt with his communication and work. I would recommend Jack and Colonial for any and all insurance needs.

Protecting Your
Home. Work. Future.

Frequently Asked Questions

What is umbrella insurance?

Umbrella insurance is an additional liability policy that provides coverage beyond the limits of your existing insurance policies, such as home, auto, or business insurance.

Is umbrella insurance only for wealthy individuals?

No. While individuals with significant assets often benefit from umbrella coverage, many homeowners and business owners use it as an affordable way to increase liability protection.

How much umbrella insurance coverage do I need?

Coverage needs vary depending on your assets, risk exposure, and lifestyle. Many people choose coverage amounts designed to match or exceed their total assets.

Does umbrella insurance cover business liabilities?

It may extend protection above certain business liability policies, depending on the structure of the umbrella policy and the underlying coverage.

Can umbrella insurance cover legal defense costs?

Yes. Many umbrella policies include coverage for legal defense expenses associated with liability claims or lawsuits.

Is umbrella insurance required by law?

No. Umbrella insurance is optional, but it can provide valuable financial protection for individuals or businesses facing high liability risks.

Get A Quote For Umbrella Insurance In Wisconsin

Large liability claims can happen unexpectedly, and when they do, the financial consequences can be significant. Umbrella insurance provides an extra layer of protection for your personal and business assets.

At Colonial Insurance Agency, we help Wisconsin residents and business owners understand the benefits of umbrella insurance and determine whether additional liability protection makes sense for their situation.

Call (262) 255-3770 today to request a quote and learn more about strengthening your insurance coverage with umbrella protection.

Colonial Insurance Agency specializes in all aspects of business and personal insurance. Contact us anytime for the best service and advice for all your insurance needs.

Umbrella Insurance