Umbrella Insurance: Protect yourself from big claims
Every day attorneys are penetrating our market with liability lawsuits.
The parents of a teenager gave him a car for his 17th birthday. The parents had an auto policy with a $500,000 per claim liability limit and an Umbrella policy with a one million dollar liability limit. One day, their son crossed over a median and collided head on with another vehicle. Two passengers in the other car were killed, and a third was seriously injured. The 17 year old driver was found negligent and ordered to pay $1.5 million to settle the injury claims.
Fortunately, the parents carried an Umbrella policy. The auto policy paid $500,000, and the Umbrella paid out the 1 million. A personal Umbrella policy offers additional coverage once the limits under your primary policy are used up. Your assets as well as your future earnings are protected.
In a world of frivolous lawsuits having an Umbrella Policy in place just plain makes sense… or cents.