Umbrella Insurance Is Essential Protection

By May 8, 2019 May 15th, 2019 Personal Insurance

Umbrella insurance policies are designed to protect you and your family from expensive losses that exceed the limits of your homeowners and auto insurance policies, such as a lawsuit. This policy provides an additional layer of liability protection on top of your existing policies. Umbrella coverage is a critical first line of defense in protecting your financial well-being, and it’s actually very affordable.

Most clients obtain $1 million in coverage for less than $250 annually. Yet, many clients do not have an umbrella policy.

After a few simple questions during a policy review, the need becomes clear: Umbrella insurance is necessary, and it’s one of the best insurance investments you can make to transfer financial risk.

Here are a few things that can significantly increase your risk exposure and liability:

  • You have young drivers.  Insuring young drivers is expensive. They’re inexperienced and more likely to be involved in an auto accident. If you have young drivers in your household, make sure you have an umbrella policy with sufficient limits. Without it, you could be paying out of pocket for things like medical expenses, lost wages, loss to potential future earnings, and property damage in the event of an accident.
  • You entertain often. Bringing people together and making memories is what life is really all about, but it also increases your liability if you’re hosting parties. Especially if you’re serving alcohol during your parties.
  • You are active on social media. You said it. It’s just been shared by several followers and now you have no idea where it went. Even if you remove an unfortunate post from social media, you can’t really guarantee that it’s gone. If you’re open on social media, an umbrella policy can protect you from libel and slander lawsuits.
  • You own a swimming pool. You can be held liable for people who are injured in or around your pool, even while trespassing.
  • You serve on a board. Board members carry personal fiduciary responsibilities to the agency or company that they serve, and they can be financially liable for the actions of the board.
  • You coach a youth sports team. Accidents can happen, fights can break out, and allegations can occur. This opens your personal life to lawsuits and medical liability, which can take a long time to resolve.
  • You have a long commute to work. An accident with a luxury vehicle can exhaust a standard auto policy. Also, consider medical bills resulting from a multi-car accident.
  • You have a dog. You are responsible for the actions of your pet – even if it’s just a nip. Lawsuits and medical bills can devastate assets.
  • You hire domestic help. Allegations by domestic workers against their employers (you) can include discrimination, wrongful termination, wrongful acts, or sexual harassment.

Let us show you how to transfer risk and protect your assets. Give us a call today.

Andy Bures, CPCU