Have you considered a personal umbrella liability policy? Here, we answer some common questions to help you determine if this type of protection is right for you and your family.
What are the advantages of a Personal Umbrella Liability policy?
- Extended Liability Protection: Provides additional liability coverage beyond the limits of your existing auto, homeowners, boat or dwelling policies,
- Legal Defense Costs: Covers legal fees associated with defending against lawsuits, even if you are not found to be liable.
- Broader Coverage: Offers protection for incidents that may not be covered by your primary liability policies. Examples include libel, slander, and false arrest.
- Peace of Mind: Ensures financial protection against significant claims and lawsuits, safeguarding your assets and future.
What does a Personal Umbrella Liability policy cover?
- Bodily Injury Liability: Covers medical expenses, rehabilitation costs, and other damages if you are determined to be responsible for injuring someone.
- Property Damage Liability: Covers the cost of repairing or replacing someone else’s property that you damage.
- Personal Injury Liability: Covers non-physical injuries such as defamation, libel, slander, and invasion of privacy.
- Legal Defense Costs: Pays for legal defense costs in lawsuits related to covered incidents.
- Incidents Outside the U.S.: Provides coverage for incidents that occur outside the United States
What is not covered by a Personal Umbrella Liability policy?
- Your Own Injuries: Does not cover medical expenses or other costs related to your own injuries.
- Damage to Your Own Property: Does not cover damage to your own property or belongings.
- Intentional or Criminal Acts: Does not provide coverage for damages or injuries resulting from intentional or criminal actions.
- Business Activities: Does not cover liability related to business activities or professional services.
- Contractual Liability: Does not cover the liability you assume under a contract.
How much Personal Umbrella Liability protection should we purchase?
This is among the hardest questions that we get. You should buy higher limits when you have exposures to loss that are greater than average. Examples include youthful drivers, fast boats and cars, and having accumulated significant assets. We use a trite expression to say that “you should buy the most that you can afford and the least with which you are comfortable.”
Please contact Mark Lowman, Duke Baldridge or another member of the Dominion Risk Advisors team to discuss.