How would a major lawsuit affect your family’s financial future? Bodily injury and other claims against you can easily total hundreds of thousands, or even millions of dollars – enough to wipe out a lifetime of savings and put future goals out of reach. Wouldn’t it feel great to know that you are protected against expensive litigation? With umbrella insurance, you can trust that your income and assets are covered against nearly any mishap – including those beyond your control.
Imagine taking your dream vacation to an exotic locale, where you charter a private boat. Disaster strikes. Your boat capsizes and sinks to the bottom, leaving you financially liable for the loss. You are sued for the physical damages, salvage, fuel spill clean-up, and injuries to one of the staff members working aboard the boat. Unfortunately, you lack the insurance coverage to protect you in such an event. Instead, a judge requires you to pay the debt out of your own pocket, which includes liquidation of your savings accounts and garnishment of your wages.
How Umbrella Insurance Protects You
Umbrella insurance protects you in two different ways. The first is backup protection for the liability insurance you already carry on your home, auto and boat insurance. Whether someone slips and falls in your home or you cause a multi-car pile-up on the freeway, your standard insurance policy will only pay up to the limits listed on your policy. Once your limits are exhausted, any remaining liability defers to your umbrella policy, which typically includes additional coverage of $1 million or more. Keep in mind that most insurers require you to carry a minimum amount of liability coverage on your standard insurance policies before issuing umbrella coverage. You may need to revisit the limits on your existing liability insurance before applying for umbrella protection.
Another way umbrella insurance protects you is with added protection not covered by most other types of liability coverage. For example, what would happen if you were sued for defamation or slander after your teenager posts negative comments about a business on a social media account? If you are found liable, you could owe the business for any financial damages caused by the post. Umbrella insurance typically covers these types of scenarios, whereas many other liability policies exclude them.
Umbrella Insurance Coverage in Manitowoc, WI
The specifics of umbrella insurance coverage vary between carriers, but most policies provide protection for injuries, property damages, and other losses caused by you and members of your household. This includes liability incurred by your pet or your child. Coverage generally includes:
- Medical expenses
- Lost wages
- Rehabilitative expenses
- Pain and suffering judgments
- Property damages
- Legal defense fees
- Court costs
- And more
Accidents happen. Even if you already have liability coverage through your homeowners and auto insurance policies, you could still be vulnerable to litigation. Whether you have decades left working in your career or are newly retired, chances are you have income or assets that need to be protected. If you are not sure whether umbrella insurance is right for you, your independent insurance agent can help. Contact us here at Dennis Gutman Insurance to discuss your personal liability exposure and to find out if umbrella insurance could offer you more financial security in the future. Call us today. We look forward to serving you soon.