What is Umbrella Policy Protection?

What is Umbrella Policy Protection?

March 02, 2022

Insurance is known to cover your possessions, such as automobiles, home, seasonal locations and recreational items like boats, motorcycles,
and all-terrain vehicles.

Did you know insurance can also protect your assets? An executive (personal) umbrella policy will cover your assets like home equity, savings and retirement accounts, as well as provide additional liability limits for insurance policies covering the aforementioned possessions.

How an Executive Umbrella Policy Works

Executive umbrella policies provide additional liability limits in addition to your personal auto, homeowners and watercraft policies. What will happen to your assets if you’re involved in an automobile accident, and your automobile liability limits are not adequate for the medical costs and property damage you caused to others? You may be forced to pay out of pocket for expenses exceeding your automobile liability limit.

Claims Examples

• Automobile – You are driving on the highway and stopped traffic causes you to rear end the vehicle in front of you. Due to your high speed, the vehicle you hit also hits the vehicle in front of it. Because it was a high-speed collision, major injuries were sustained by the driver you hit. The total medical costs are $850,000. Your automobile liability limit is $500,000. Fortunately, you purchased an executive umbrella policy with $1 million in liability limits, which is able to cover the rest of the medical bills.

• Social Media – You are unhappy with service you received at a local retail store. You go online and post defamatory comments for anyone to see. The local retail store files a $1 million lawsuit for defamation, stating your comments damaged their reputation and cost them customers. Your executive umbrella policy provides defense coverage for the lawsuit, and may settle the lawsuit or pay a verdict up to its policy limit.

As you can see, an executive umbrella policy can protect you and your family’s assets from the various liability risks you face in your day-to-day lives, even those you maybe haven’t considered. It is a relatively inexpensive way to protect your assets. Contact our agency for more information about how you can obtain additional coverage limits through an executive umbrella policy.