Have you asked yourself if you should have excess personal liability insurance, more commonly known as umbrella insurance? If your assets or income potential exceed the limits of liability coverage under your home insurance or auto insurance, the simple answer is, yes.

Your umbrella policy begins to pay when your other liability policies are exhausted, or if you are sued for an action such as slander or libel that is not covered under home or auto insurance.

Typically umbrella insurance is a great value. Adding this coverage to your package can cost just a few dollars a month, for which you receive $1,000,000 or more toward legal expenses and damages if you are sued.

Who can benefit from umbrella or personal liability protection?
• Business owners: While your business insurance likely offers a great deal of protection for your company’s interests, you may be held personally liable for any losses or claims not covered by your business policies. Adding a personal liability or umbrella policy to your coverage plan can help you address any lawsuits or claims.
• Parents: Despite our best efforts as parents, children do not always make the best decisions. If your child makes a mistake that leads to another party’s injury or loss, you may be held responsible for their damages. Umbrella insurance enhances the protection offered by your home and auto policies, and significantly reduces the chances of out-of-pocket expenses in the event of another party’s loss.
• Professionals: Individuals who offer professional services, including doctors, lawyers, architects, teachers and others are often exposed to liability from clients who feel they have been misrepresented or misled in some way. Adding a personal liability policy on top of existing business insurance coverage is important to avoid uncovered losses and out-of-pocket expenses in the case of a lawsuit.
• Wealthy families: Unfortunately, individuals and families with wealth often become the target of frivolous law suits. Such legal action can be very expensive – umbrella policies offer protection against these expenses, and may also cover the costs of adverse judgments.
• Property owners: Property ownership opens you to a wide range of liability. If a visitor to your commercial or residential property is injured, you may be held responsible for their losses. Umbrella policies offer protection against these costs, and provide the financial assistance you need during ongoing legal proceedings resulting from such an incident.

Do you carry an umbrella policy? Have you thought of how you will handle expenses if you are sued?