After a hectic work week, Jim Marshall was looking forward to a relaxing weekend with his wife and kids. He was just a few blocks from home when his cellphone rang. He glanced down to see who was calling. That split-second distraction was all it took for him to miss the approaching stop sign.
Jim plowed into the side of a passing car. The accident resulted in serious injuries to the driver and passenger of the other vehicle. Jim was sued, found at fault and ordered to pay $1 million for medical expenses, lost wages and the “pain and suffering” of the injured parties.
Although he had auto insurance, the policy had a limit of $300,000. That meant that unless Jim had another way to pay the remaining $700,000, his assets (retirement savings and college funds for his teenage sons) were at risk of being garnished.
Fortunately, Jim was able to keep his assets because he had a personal umbrella liability insurance policy to cover the remaining balance. Just as an umbrella shields you from the rain, an umbrella insurance policy protects you from a downpour—that worst-case scenario where you could lose everything in a lawsuit. Even if your assets are few, umbrella insurance also protects your income; in some settlements, wages can be garnished up to 10 years.
In addition to extending the limits of your auto and homeowners policies, umbrella insurance also covers personal injury claims, including false arrest, libel and wrongful eviction, typically excluded by those policies. Dependent teenage drivers on your auto policy are also covered.
Plus, it’s easy and more affordable than you might think. Want to find out more, with no obligation? Contact us at 847-432-1000 – we are happy to answer your questions!