Though most people have business insurance to protect their professional assets, and auto/home/life insurance to protect their personal assets, why is purchasing an umbrella insurance policy still a good idea?
An Umbrella Insurance Policy Offers Protection Beyond the Usual
An umbrella insurance policy offers additional protection typically in the amount of $1 – $2,000,000. Though it’s easy to assume only the wealthy need that much additional coverage, there are several scenarios that prove that it’s a good asset protection plan for everyone.
85 percent of umbrella insurance claims are related to car accidents. This is an indicator that very often even a well insured motorist may not have enough typical auto insurance to cover claims in our litigious society. Then there are situations where you may be involved in an accident while driving in a foreign country, or driving a ski boat or jet ski, etc. Your umbrella insurance policy protects beyond the usual.
Will your home owners insurance be enough to protect you if you have a swimming pool or trampoline on your property, or if guests at a party at your home get injured in some way? Again, these are unusual circumstances that may require additional asset protection.
Another important feature of an umbrella insurance policy is the protection they offer against lawsuits for such things as defamation of character or slander. With the freedom of speech social media sites such as Facebook offer today, you may be more vulnerable than you imagined. Because all umbrella coverage is not the same, a NEC insurance professional can design specific umbrella coverage to protect your unique exposures.
You Have More at Risk Than You May Think
If you currently think, “they can sue me, but they won’t get much”, think again. At any time you can be sued for more than you have in the bank. Your retirement funds, investments, savings, and even your future earnings may be at risk if they are included in a settlement.
The cost of the additional protection offered by an umbrella insurance policy is minimal when comparing the benefits. The typical cost for $1 million of protection runs approximately $200 per year. That’s a little over $16 per month. You can purchase more if you feel you need it, but it’s recommended that you consider your total financial picture when making decisions about how you want your assets protected in the event something unusual puts you at risk.
For more information about an umbrella insurance policy for you or your business, contact Joe Bosse, President, at 636.271.2481, or jbosse@NECins.com.
NEC is one of the largest independent insurance brokers in Missouri offering business insurance, personal insurance, risk prevention, and financial services. Contact us today for more information at 636.271.2481 or visit NECins.com.