Excess Liability coverage, or umbrella coverage, offers large amounts of additional liability coverage to protect you in case of a lawsuit. Once your primary coverage (i.e. auto or home insurance liability protection) runs out, your umbrella coverage kicks in to provide you with the additional protection you may need.
Imagine the following:
1) Your teenage son is found at-fault in an auto accident where several people were harmed and causing damage well in excess of your $300,000 liability limit on your auto policy.
2) Leaving your home one night, after a party, your neighbor falls and seriously hurts himself, suing you for $1,000,000 far in excess of your home insurance liability coverage of $500,000.
3) Your dog bites a neighbor’s child requiring extensive medical care which far exceeds your $300,000 liability coverage on your home insurance policy.
These are just a few of the horrible scenarios in which, once you underlying liability coverages were exhausted, your umbrella policy would step in to provide you with protection. In addition, umbrella policies also cover an insured for claims of libel or slander that may be made against you, both of which, may not be covered on your current underlying policies.
Many may say that they don’t need this type of coverage since they own very little assets. Unfortunately, courts may still place attachments against your future assets or wages, and for many filing bankruptcy is not an option when looking to protect yourself, or your family, from this type of situation, especially when the cost of an umbrella policy is minimal in comparison to a successful court settlement against you. We have numerous carriers that underwrite excess liability, or umbrella coverage, up to $5,000,000 at a minimal annual premium.
Please note, that certain underlying coverage’s are required on other policies in order to qualify for umbrella coverage
Please contact us directly for a no cost evaluation of your current policy or to inquire about opening a new policy.