Umbrella Insurance Is The New Liability Coverage

COSTA MESA, Calif. - Feb. 24, 2020 - PRLog -- POST WRITTEN BY

Lev Barinskiy

Full article on Forbes.com (https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2020/01/30/umbrella-insurance-is-the-new-liability-coverage/#7e29b9c27d65)

Founder and CEO of SmartFinancial.com: (http://www.smartfinancial.com/) on a mission to make the insurance-buying process more efficient.

It seems as though the wealthier an individual is, the higher the risk of being sued. It's just one of the downsides of being affluent, especially if that person is also a business owner. In opportunistic lawsuits, primary policies like standard car insurance, home insurance and a business owner's policy do not fully protect a client who has a substantial amount of assets. Also, personal injury is often not covered by those primary policies.

Relative to what a client is at risk of losing in a lawsuit, the cost of umbrella coverage is inexpensive. It's especially cheap compared with primary policy prices and raised limits on those policies. Even if someone's car insurance were set at the highest limits, say $250,000/500,000/$100,000, if that person were involved in a gravely serious car accident with several passengers involved, that limit simply would not cover the losses and medical bills. Trouble like this doesn't happen often, but when it does, it hits hard.

With a personal umbrella policy, the insured who caused the accident would be covered for most, if not all, losses. Surprising as it is to many, insurers keep prices low on umbrella policies. I believe this is because they know that the majority of umbrella policyholders will most likely not be sued, and when they are, most, if not all, of their losses are covered by the insured's primary coverage. At a fraction of the cost (https://www.nerdwallet.com/blog/insurance/umbrella-insura...) of most auto insurance policies, the insurer can guarantee coverage of $1 million to $10 million, depending on how much the insured has the potential of losing.

It seems like a no-brainer to buy umbrella insurance if you have a home or business...