Umbrella Liability

What is umbrella/excess liability? Simply stated, it’s backup insurance for major losses. You insure your home, auto, and watercraft, for example, all of which have distinct liability limits. If a serious loss occurs, exceeding one of these limits, an umbrella policy would continue paying for the loss up to the policy limit.

Why should I carry an umbrella policy?

Consider your lifestyle:

  • Do you often entertain, serving liquor?
  • Do you have teenage drivers?
  • Do you own or operate recreational vehicles?

What limit should we purchase?

  • How much do you have to lose?

When choosing your umbrella limit, some important factors to consider:

  • Your net worth
  • Earnings potential
  • Lifestyle
  • Public profile
  • Occupation
  • Legal environment

Umbrella policies provide some of the highest coverage limits for the least amount of cost. They also provide the best assurance that your estate remains intact if the unthinkable occurs. Peace of mind is worth its weight in gold. 

Most umbrella policy coverage limits are reduced by the amount of defense costs. If you have this type of policy, you may want to re-evaluate your coverage limit or replace your umbrella policy with one that leaves your policy limit intact despite the amount of defense costs.