What are the 'gaps' that umbrella insurance covers?

One of the major factors that should guide you when looking for a personal umbrella policy is how well it covers the 'gaps'. By 'gaps' we mean the liability risks you are exposed to, which are not covered by your primary policy. These are usually specific or unique situations from which liability may arise.

'Gaps' Usually Covered Under Umbrella Policies

• Renting ATVs, boats, snowmobiles and other recreational vehicles.

  You need coverage that will protect you if you are held liable for causing injuries or property damage to a third party, or damage to the rented item. If you are in the habit of renting recreational vehicles, you should get umbrella insurance that provides such coverage.

• Renting automobiles.

  Most personal auto policies cover renting car liability in the United States and Canada, but you should still make sure they do before signing the insuring agreement. However, you do need umbrella insurance if you are to drive outside The United States and Canada, since PAPs usually don't provide liability coverage for rental cars abroad.

• Worker liability

  Employers usually have Workers' Compensation insurance with certain liability limits, so they need additional coverage in case their limits are exhausted in a liability case. Some (though not all) umbrella insurance policies provide extra employee liability coverage.

• Company car liability.

  If you drive an auto furnished for you by your employer, you need an umbrella policy which covers two risks that are excluded from your employer's business auto insurance: causing injuries to co-workers who happen to ride in the company car with you, and driving borrowed or rented cars.

• Pollution liability.

  Some umbrella policies cover accidental and sudden pollution liability that is typically excluded from general liability policies (but not seepage gradual pollution).

• Rental Contract liability.

  It is important to buy an umbrella policy that will protect you against liability arising out of the rental of facilities, tool and equipment, and especially - cars.

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