What is Bumbershoot or Umbrella Insurance?
Bumbershoot or Umbrella insurance is a specialized form of liability insurance. A bumbershoot or umbrella insurance is a type of coverage designed specifically to insure marine risks, but it can also include non-marine risks. Shipyards often use this type of policy, which provides protection and indemnity coverage as well as liability protection under the Longshoreman and Harbor Workers' Act. The word bumbershoot literally means "umbrella". Hence the name for this type of policy, which is intended to cover all miscellaneous forms of liability just as a standard umbrella policy does for individuals or businesses. Bumbershoot policies can also provide insurance for collision and salvage expenses.
Why purchase Bumbershoot or Umbrella Insurance?
If you have lots of assets to protect, a future to ensure (kids, retirement investments), multiple homes, vehicles, animals, anything that can harm anything/anyone inadvertently or through negligence or in any way shape or form, insure everything, that's what an "umbrella" does: it covers everything. You never know how good your insurance policy is until you need to use it; if you have lots of things to lose in a lawsuit or in a disaster, insure accordingly.
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