Umbrella Liability Insurance is probably the most important part of an individual’s or family’s insurance program. It provides limits upwards of $1,000,000 for third party actions brought against a member of the household as a result of bodily injury or property damage caused accidentally.
Umbrella Liability Insurance covers the cost of the defense against a lawsuit, as well as damages that may be awarded to the third party. The limit of the policy piggybacks on top of the primary personal liability carried, the automobile liability in force, and any other primary liability such as boat (protection and indemnity), aircraft, and employer’s liability (workers compensation).
Carrying this protection helps to insulate the insured’s assets and future earnings from third parties.