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.
@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?
@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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