Why Buy a Personal Umbrella Policy?

There are many reasons why an individual should consider the purchase of a personal umbrella policy. Please find below just a few of the reasons.

Why Should an Individual Purchase a Personal Umbrella Insurance Policy?

A personal umbrella policy is among the best values in insurance today. For as little as $290 a year, you can purchase $1M of additional coverage from us that provides protection for you, personally, in excess of the limits provided in the required underlying Auto & Home policies.

If you answer “Yes” to any of these questions, you probably need a personal umbrella policy:
 

  • Do you have assets that you would like to protect?
  • Do you have sizable earnings or a high profile career?
  • Do you have a youthful driver in your home?
  • Do you own a dog?
  • Do you serve on the board of a non-profit organization?
  • Do you own a swimming pool?

This is only a partial list of potential personal liability exposures. In our society, you never know what might trigger a lawsuit. Even if the suit is groundless, defense costs can be substantial. Our umbrella policy provides the coverage you need to help handle these defense and liability costs.

Optional Group Personal Umbrella

Why Should a Firm Sponsor a Group Personal Umbrella Program?

Many firms now require that their equity partners show proof of personal umbrella insurance each year. They require this because while a personal umbrella policy provides extra protection for an individual (as above), it can also provide some indirect coverage benefits to the firm as well.

Here are just a few of the reasons other firms have given as to why they now require that each partner in the firm purchase a personal umbrella policy:
 

  • A general concern for the well-being and protection of the firm’s employees – especially should a partner one day become enmeshed in a personal lawsuit where legal and liability costs prove to be extensive.
  • The firm’s legal structure might create a potential for joint and several liability.
  • A concern about Host Liquor Liability, where a partner of the firm hosts a party at their house and a client (or prospect or employee) is injured.
  • Likewise, the potential for liability clawing back to the firm where a partner drives their personal car while transporting clients or prospects or employees.

These firms view the group personal umbrella format as being an easy (and inexpensive) means to bring this important coverage benefit to their employees. Also, the group vehicle allows for a simple means to confirm proof of this coverage from each partner.

February 16th, 2016 by Sangamon Associates, Inc.