Personal Excess Liability (Umbrella) Insurance
Personal Excess Liability Insurance—also known as Umbrella Protection—expands your liability protection beyond what is in your homeowners, auto, and boat insurance by providing worldwide coverage limits up to $50 million. You don't have to be a millionaire to be sued like one. That's why excess liability coverage should be an important part of your portfolio.
Personal Excess Liability Coverage Highlights
- Property Damage and Bodily Injury: Coverage applies in the event that you are liable for someone being injured on your property.
- Personal Injury: This important coverage applies to situations such as lawsuits involving accusations of libel, slander, or negligent infliction of bodily injury.
- Defense Costs: Even if a lawsuit is groundless, false, or fraudulent, this insurance covers the cost to defend, including legal counsel and all expenses incurred. In most states, there is no cap on this coverage.
- Excess Uninsured/Underinsured (UM/UIM) Motorists Protection: This coverage includes up to $1 million in excess UM/UIM coverage that provides benefits directly to you and your covered passengers if you’re involved in an accident with an uninsured or underinsured driver.
How Much Excess Liability Do You Need?
The amount of excess liability coverage that is right for you depends on your personal financial situation. Lawsuits may evolve into much more costly disputes than originally anticipated.
Your assets could be targeted if you don’t have adequate liability coverage for legal damages.
To determine an appropriate limit, work with your agent or broker to review all of your assets, such as your house and other properties, vehicles and boats, personal belongings and valuable collections, 401(k) investments, and college funds for your children. Keep in mind all of your risk factors—some obvious and others not so obvious—such as the length of your work commute, domestic employees, and the online activities of household family members.