Personal Umbrella insurance is a way to keep you out of trouble in the case of an extreme situation. It goes above and beyond your current policies to provide you with additional liability protection. It’s often the only way of staying financially solvent even when expenses begin to mount in claims against you.
Unfortunately, many people who should have personal umbrella insurance don’t carry it because they don’t understand very much about it.
It’s not required by law, and it’s not often spoken about outside of certain circles. If you’re wondering why now is the right time for umbrella insurance in Massachusetts, it’s time to consider how this precaution can protect you and your family from a worst-case scenario.
Personal Umbrella Insurance Facts
Personal Umbrella insurance is meant to serve as a supplement to other kinds of insurance, such as rental, home, or auto. Standard insurance carries liability limits, and umbrella insurance can extend those limits in the case of a particularly nasty claim against you. It can also go toward indirect financial matters that may arise during a claim (or even after a claim has been settled.) For instance, a lawsuit against you after an auto collision may not only cost you legal fees; it may also result in having to pay the medical bills for a chronic injury. If your auto insurance policy only carries bodily injury limits of $250,000 per person and $500,000 per accident umbrella insurance takes care of any fees that surpass the $250,000/$500,00 limit.
Personal Umbrella Insurance — Why Now?
People consider getting personal umbrella insurance when they’ve amassed a certain amount of wealth they don’t want to lose. Regardless of where you live or how much you own, no one is immune from having a serious liability claim brought against them. For example, if you throw a party in your home and a guest gets into a serious car crash after leaving, you may be partially liable if the guest was intoxicated when they left. Personal Umbrella insurance is also a smart move for those who can’t afford to have their reputation dragged through the dirt. Umbrella insurance can cover the financial repercussions of fighting against slander charges that may threaten a person’s career or status.
Coverage and Customization
Personal Umbrella insurance doesn’t cover every event, but it does cover the vast majority of them. From dog bites to tenant accusations, umbrella insurance can make up the difference on your current insurance policies should you happen to go over. Plus, umbrella insurance policies are not one-size-fits-all. Those interested in umbrella policies have the opportunity to talk to an agent to address their biggest concerns. For example, if you’re a mechanic in Massachusetts who wants additional coverage for your commercial garage, you can buy a commercial umbrella insurance policy to cover any liability claims against you. Talking to an agent is the best way to determine what your coverage should be, and how it should be structured to fit your needs. Talk to us today to learn more.
A Professional Matter
Many professionals who don’t want to take chances with their livelihood take out umbrella insurance. They choose to arm themselves with the best defenses in the case of an error so they can breathe easy about the future. Every profession has some degree of risk when it comes to professional liability, but some are more prone to liability than others. Doctors who have malpractice insurance may use umbrella insurance to cover financial obligations, regardless of whether they choose to fight or settle the claims. An investor may have umbrella insurance in case of an unpredictable market crash. Psychologists may use personal umbrella insurance if a client accuses them of harm. Landlords can especially benefit from umbrella insurance because the risk of being sued by either a tenant or a visitor is extremely high.
Practical Risk Assessment
Deciding if now is the right time for umbrella insurance is all about risk assessment. List out your assets and the risk of losing them based on your lifestyle and location. Assets should include not just your physical property, but also any stocks, retirement savings, or bonds. This is not to say that umbrella insurance is only for those with strong portfolios — it’s made for anyone who wants to keep their hard-earned money. For example, if you’re in a position to climb the corporate ladder, a slander charge against you can seriously jeopardize any future income you make. Before making a final decision, remember that umbrella insurance is often the only way to prevent the loss of accumulated assets or bankruptcy.
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