What is a Lodge Umbrella Policy in Insurance? 

If you are planning to buy an umbrella insurance policy for your lodge, you should learn the features that it offers and what it excludes. This article will give you a basic overview of the coverage limits, exclusions, cost, and liability risks. Read on to learn more. This insurance policy is designed especially for hotels. It provides coverage for over 20% of hotel rooms in the U.S. Distinguished Umbrellas is a hotel insurance provider with expertise and experience in providing insurance to hotels.

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Coverage limits 

A good lodge umbrella policy will cover incidents not covered by your other insurance policies. While most lodge umbrella policies come with a $1 million limit, you should look for higher limits if you are concerned about the financial consequences of an accident. Moreover, some insurance companies will cover rentals of watercraft that are not covered by their other policies. These insurers are reputable and have a strong track record. Coverage limits for lodge umbrella policies can increase as your needs increase. 

For lodging properties, the McGowan Program Administrators Hotel Umbrella policy is a good option. It covers a variety of establishments, including hotels, motels, resorts, and casinos. As a hotel, you have the added responsibility of hosting travelers from all over the world. As such, you’ll have to face various peculiar situations. But, luckily, you can count on a professional to help you decide on a policy. 


One of the most important things to look for in a lodge umbrella policy is the exclusions. Some types of property damage, business losses, and intentional acts are not covered under a personal umbrella policy. Some policies don’t cover certain kinds of watercraft, such as boats, so be sure to research this before signing a policy. However, these policies are usually quite affordable and can protect you against major claims. 

An umbrella policy provides extra liability coverage that pays out in the event of a lawsuit, even if other types of insurance policies are inadequate. Although Nerd Wallet does its best to present accurate information, sometimes facts may vary from what is available on the actual site. Additionally, pre-qualified offers cannot be relied on for legality. In other words, you should always verify that the policy you’re about to purchase contains these exclusions before signing it. 


Hotel owners may need to consider obtaining an umbrella insurance policy to protect their properties. This type of insurance can cover many things, including a lodge’s liability for damages resulting from accidents. The costs for this type of insurance depend on factors such as the age of the property and the number of people living on the property. Teenagers are also at a higher risk for accidents, making this the perfect time to obtain extra liability coverage. In addition to teens, the risk profile for a lodge may include the presence of pets, swimming pools, trampolines, and high-powered vehicles. 

In California, a woman went through two years of litigation after a dog attack. The postal worker demanded a settlement that exceeded her homeowner’s insurance policy. She did not have an umbrella policy, and she suffered a dramatic increase in her homeowner’s premium due to the resulting negative Yelp review. Because of the negative review, the homeowner’s insurance premium soared. A negative Yelp review can result in a defamation lawsuit if the owner is found culpable. A man refused to cut down a tree in his yard, resulting in a defamation lawsuit. 

Liability risk factors 

When choosing a lodge umbrella policy, you should consider all of the factors that impact your risk. For example, if you own a large number of assets, you should consider purchasing an umbrella policy. A $1 million policy will cover all of your assets, up to your liability limit. Likewise, if you work in an industry with a high amount of liability, a $1 million policy will protect your net worth. 

Another factor that impacts your risk is your credit score. A low credit score will increase your insurance rates. You should also take into account any teenagers in your household. Drinking and driving can increase your risk. You should also consider any potential loss of future income you may experience from liability lawsuits. In case of an accident, you’ll need more coverage than if you just have property insurance. For this reason, you need a liability insurance policy that covers you and your family.