Call Us 504.832.4161 ☰ ˟
Logo
Call Us 504.832.4161
  • HOME
  • BUSINESS
    • Business & Commercial Insurance
    • Parade Insurance
    • Bonds Insurance
    • File a Claim
  • PERSONAL
  • MAKE A PAYMENT
  • RESOURCES
    • Important Links
    • Insurance Glossary
    • Privacy Policy
  • CONTACT
    • About Us
    • Employee Directory
    • Our Locations
Home > Blog > It's Raining Lawsuits: Do You Need An Umbrella Policy?
FRIDAY, JANUARY 9, 2015

It's Raining Lawsuits: Do You Need An Umbrella Policy?

It's impossible to predict whether you might lose a lawsuit resulting from a car accident or an accident on your property. Nor is it possible to predict the amount that might be awarded to the winning party, an amount that you would be responsible for paying. To protect yourself against the possibility of devastating financial loss from these unforeseen events, you may want to purchase an umbrella policy.

What Is an Umbrella Policy?
An umbrella policy protects your existing personal assets and future personal assets (like wages, your inheritance or that lottery you're planning to win) against the cost of losing a lawsuit over a car accident or an accident on your property. If you were to lose such a lawsuit, you would likely have to pay the winning party for costs such as medical expenses and lost wages, which can quickly become very expensive.

You don't have to be wealthy to need an umbrella policy - even if you don't have any assets, your wages can be garnished.

An umbrella policy picks up where your auto and homeowners insurancepolicies leave off. It has a high deductible because the deductible is designed to be met by your other policies. Expect to pay around a few hundred dollars a year for this coverage.

What It Covers

An umbrella policy provides excess coverage above and beyond what is provided by your homeowners and auto insurance policies. As an example, let's say your auto insurance pays $300,000 of medical expenses per accident and your umbrella policy is for $1 million. If you are sued for $900,000, your auto insurance would pay $300,000 of the damages and your umbrella policy would pay the remaining $600,000. Umbrella policies usually provide roughly $1 million to $5 million of additional coverage, and it is possible to get more if you have lots of assets to protect.

What about the legal expenses you'll incur if you're sued? With umbrella policies, legal expenses are covered on top of the policy amount. The policy may also pay you if your appearance at legal proceedings causes you to lose pay from work (for example, if you are an hourly employee or if you don't have any personal or vacation days available). Since the insurance company's money is at risk when you're sued, it'll want to protect that money with its own legal team, possibly a better legal team than you could afford on your own.

In addition to covering you for accidents on your property or car accidents you are found to be at fault for, an umbrella policy can also protect your dependentchildren (for example, if your daughter causes a car accident), any accidents caused by you or your dependent children while operating a watercraft, accidents that occur on rental property you own and personal injury lawsuits arising from slander, libel, defamation of character, false arrest, detention or imprisonment, abuse of process, malicious prosecution, shock/mental anguish and possibly more. Be sure to consult your specific policy for details.

Read More: Source

Posted 10:10 AM

Tags: umbrella, insurance, policy
Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

  • insurance(130)
  • tips(71)
  • home(52)
  • homeowner(32)
  • auto(31)
  • car(22)
  • safety(21)
  • homeowners(17)
  • claims(14)
  • business(13)
  • house(13)
  • holiday(11)
  • rates(11)
  • money(10)
  • life(10)
  • winter(9)
  • policy(9)
  • summer(7)
  • flood(7)
  • weather(6)
  • health(6)
  • save(6)
  • value(6)
  • commercial(5)
  • claim(5)
  • dog(5)
  • halloween(5)
  • loss(4)
  • theft(4)
  • funny(4)
  • new year(3)
  • hurricane(3)
  • accident(3)
  • liability(3)
  • family(2)
  • louisiana(2)
  • valentine(2)
  • inventory(2)
  • finance(2)
  • automobile(2)
  • 4th of july(2)
  • graduates(2)
  • umbrella(2)
  • fall(2)
  • super bowl(2)
  • customer service(2)
  • credit(2)
  • cold(2)
  • fraud(2)
  • driving(2)

View Mobile Version
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Founded 1919
111 Veterans Blvd, Suite 1420
Metairie, LA 70005
Tel: (504) 832-4161

1502 W. Causeway Approach, Suite A
Mandeville, LA 70471
Tel: (985) 626-1255
About Stone Insurance
About Us
Our Team
Our Locations
In The News
Read Our Blog
Join Our Newsletter
File a Claim
Make a Payment
Employee Login
Commercial Services
Business Owners
General Liability
Workers Compensation
Commercial Vehicles
Equipment
Buildings & Property
Parade
Flood
Professional Liability
Personal Services
Automobile
Homeowners
Flood
Umbrella
Marine
Logo
Social Social Social Social

Powered by Insurance Website Builder