Umbrella policies provide shelter from legal storms

Even when you have homeowners and auto insurance, they may not prove adequate if you're found responsible for injuries resulting from an accident. That's where a personal liability — also known as an umbrella — policy comes in. This type of coverage provides between $1 million and $5 million in liability protection above your primary liability policy, helping to protect your assets from lawsuits.

Newsletter Signup

While primary policies cover bodily injury and property damage, umbrella policies also cover personal injury claims, which can be costly. In addition, they might cover an injured party's medical and rehabilitative care and lost wages as well as your legal defense fees.

Umbrella policies generally make sense for people with substantial assets who are at greater risk of being sued. This could mean anything from having multiple properties, to a backyard swimming pool to an aggressive dog — or even teenage children. Fortunately, umbrella coverage is relatively inexpensive, particularly when you consider the potentially catastrophic cost of a single accident. •


Other articles in the June 2012 Edition of Business Matters: