February 10th is National Umbrella Day! Just as an umbrella shields you from the rain, an umbrella insurance policy protects you from a downpour—that worst-case scenario where you could lose everything in a lawsuit. Even if your assets are few, umbrella insurance protects your income; in some settlements, wages can be garnished for up to 10 years.
Why do you need Personal Umbrella Liability Insurance?
Personal liability umbrella insurance is a type of insurance coverage that provides additional protection against personal liability claims. It is an umbrella over other liability policies, such as homeowners or auto insurance. It offers extra insurance coverage above the limits of those policies. This insurance provides financial protection in case of a covered loss, such as a lawsuit, settlement, or judgment against you. In addition, it can help cover the costs of legal fees, damages, and other expenses related to personal liability claims.
Jim’s story: protection from a downpour of problems
After a hectic work week, Jim looked forward to a relaxing weekend with his wife and kids. On the way home, Jim glanced down at his ringing cell phone to see who was calling. Unfortunately, that split-second distraction was all he needed to miss an approaching stop sign.
Jim plowed into the side of a passing car. The accident resulted in severe injuries to the driver and passenger of the other vehicle. Jim was found at fault in litigation and ordered to pay $1 million for medical expenses, lost wages, and the pain and suffering of the injured parties.
Although he had auto insurance, the policy had a limit of $300,000. That meant that his assets were at risk of garnishment unless Jim had another way to pay the remaining $700,000. He was now in danger of losing his savings for retirement and college.
Fortunately for Jim, he could keep his assets because he had a personal umbrella liability insurance policy to cover the remaining balance.
In addition to extending the limits of your auto and homeowners policies, umbrella insurance may also cover personal injury claims, including false arrest, libel, and wrongful eviction, typically excluded by those policies. Dependent teenage drivers on your auto policy are also covered.
Why put your nest egg, retirement savings, and other hard-earned assets at risk? Umbrella insurance is an affordable layer of protection, typically starting with $1 million in coverage, with additional coverage available if your financial situation changes.
Want to learn more?
Our customer-first coverage review is a service that we provide at no cost and with no obligation. We aim to empower our customers with choices while saving them time and hassle. As an insurance broker, we work with many insurance providers to match the best products to you after we get to know you and your needs. Call today for a free, no-obligation consultation at 412-754-3388.
Please note that the information contained in this posting is designed to provide general awareness in regard to the subject matter covered. It is not provided as legal, medical, or tax advice, nor is it intended to address all concerns in your workplace or for public health. No representation is made as to the sufficiency for your specific company’s needs. This post should be reviewed by your legal counsel or tax consultant before use.