It’s easy to assume excess liability coverage — often called umbrella insurance — is only necessary for someone with extraordinary risk exposure. But in today’s legal environment, that assumption can leave even affluent households financially vulnerable. Rising settlement costs, escalating legal expenses, and the increase in nuclear verdicts mean that a relatively ordinary incident — a car accident, an injury on your property, or even hosting guests at your home — can result in a claim that far exceeds the limits of a standard insurance policy. In this environment, excess liability coverage is more than an added precaution — it’s an essential part of a thoughtful personal risk management strategy.
Sources: Sedgwick and Institute for Legal Reform
“Liability coverage saves you from paying for someone else’s injuries or property damage when there’s an accident."
Excess liability insurance, sometimes called an umbrella policy, is designed to protect your assets from personal injury, bodily injury, or property damage lawsuits. But how much coverage do you need? The answer to this question is different for everyone and depends on your unique circumstances. Your current net worth is a good place to start, but keep in mind that an unfavorable verdict may also put your future assets at risk.
An MMA PCS personal risk advisor can help you understand the differences between the coverages and services offered by different insurance carriers, some of which may not offer the high liability limits you require. They can also help make sure the liability components of your auto, home, watercraft, umbrella, and other personal insurance policies work together as a seamless plan.
The chances of facing a massive lawsuit may seem low, but it’s not only the wealthiest individuals who face large lawsuits. There are many reasons someone could file a lawsuit against you for personal damages.
How many of the following common sources of liability risk apply to your life?
The good news is, with the right liability coverage in place, you can have peace of mind knowing you’re protected.
Personal excess liability covers pedestrian’s $2 million injuries.
