A drunk person fell getting out of our car, and I found out that our whole umbrella policy didn't cover bodily injury if alcohol was involved. The client was a diplomat's guest who was picked up at a hotel in Polanco. He'd had a few drinks, nothing crazy, but when he tripped on the curb and broke his wrist, his lawyers came after us for being careless. I thought our commercial auto and umbrella insurance would keep us safe, but there was a clause in the umbrella exclusions that said there was no coverage for accidents involving drunk people, even if they weren't the driver. That one clause would have made us pay for medical bills and possible legal fees out of our own pockets—over $80,000. We were saved by a quick-thinking advisor who helped us get a rider just a few weeks before, based on a similar case they had seen in the luxury chauffeur business. What I think? Don't think that the umbrella label means full protection. These policies are often made to cover things that are easy, not things that are risky. If your service includes high-net-worth clients, late nights, or events with alcohol, even if you're just the driver, you should look closely at every exclusion. Get each risk scenario signed by name. I now do a yearly red team audit of our policies, assuming that someone wants to sue us and fixing the holes before they cost us the business.
The hardest part of wrapping my head around my umbrella insurance policy was attempting to discern what was covered and what was not. It was written in legalese, and I had a hard time deciphering if my business was properly covered, in particular, the electric vehicle component of the business. There were so many exclusions, and they were so poorly worded that I wasn't sure if I was covered for everything that I would lie awake at night, stressing that something could happen. To combat this, I wound up booking a meeting with an insurance expert who took me through the policy word for word. They clarified all of the confusing terminology and provided me with straight yes or no answers on what was included and excluded. This informed me on several aspects that I did not know regarding the gaps I had, particularly on liability risk associated with EV infrastructure. My word of advice to people grappling with the same is: tell someone. Do not attempt to do it alone - insurers and brokers can simplify things for you and inform you about what you need.
When trying to understand an umbrella insurance policy, the hardest part is often figuring out when it actually applies and what it does or doesn't cover. Make sure you know how much coverage your regular policies have as it only comes in after your regular insurance (like home or auto) reaches its limit. Umbrella insurance doesn't cover everything. For example, it usually doesn't cover business problems, intentional harm, or agreements you sign. I would give advice to not be afraid to ask your agent questions until it makes sense and to give simple examples of what is and isn't covered.