Umbrella policy

5 Replies

Does a personal umbrella do anything for me if I have commercial properties under LLC name and I gave personal guarantee on the loan? Wondering if a personal umbrella helps me at all if the LLC gets sued?

Hi Ryan - we have the exact same set up as you do. We have a million dollar umbrella liability policy in case we get sued. 

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@Ryan Nelson Not an expert on the topic, but I would think no. You as an individual are the named insured on the personal umbrella. The LLC is not a named insured.

I don't think the personal loan guarantee has any bearing - that's a bank requirement.

Talk to an insurance broker/agent who specializes in commercial properties.

no legal advice.

Could you use an umbrella policy with a S-Corp instead of a LLC?

Cheers,
Bill Womeldorf
Remodeler, Designer
Western, MA

@Bill Womeldorf  @Ryan Nelson  Bill's post led me to think that my response may not have been clear. I was not saying that an umbrella/excess liability policy could not be obtained for your purposes (or for an s corp. Etc).  I just dont think that your personal umbrella policy will do the trick.  You can buy a commercial excess liability policy, but its different from your personal umbrella.

no legal advice.

@Ryan Nelson   @Derek B.  is correct in his explanation.  A personal umbrella excludes business operations which is what makes it a "personal" umbrella.  A commercial umbrella will cover the business and the owners of the business.  So if the llc and you are both named in a lawsuit, the commercial umbrella defends both.

Both the personal and commercial umbrella give no support to the personal guarantee. 

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