It’s a fact that most of working America does its best to abide by the law. Indeed, one of the best things about the United States is that everyone has the right to due process and a fair trial.
However, insurance fraud and lawsuits are also realities of life. Having the right kind of insurance is essential—especially if you’ve invested in domestic companies and services or own a business yourself.
How umbrella insurance works
In general, umbrella insurance—a type of personal liability insurance—protects your assets from lawsuits. If you’re sued because of an event that took place on your property, in your vehicle, or due to any actions you specifically have taken, an umbrella policy is a big help.
For example, if you own an expensive car, umbrella insurance covers what your primary car insurance won’t. It’s a fantastic and safe way to protect your most valuable belongings and assets from another party’s legal actions, but its value goes even beyond what you might think at first glance.
Say you pack a full lunch for your child’s soccer game and offer some of the food to their teammates—and then the children get sick directly after eating your home-prepared food. If any of the other parents try to sue you over food poisoning, you can rest assured that umbrella insurance protects your assets from the reach of any lawsuit.
Additionally, in case your work puts you in the public eye, it’s good to know that umbrella insurance can protect you from malicious prosecution and invasions of privacy.
Umbrella policies usually offer around $1 million per unit of coverage—meaning that if the lowest coverage is $1 million, the next lowest is $2 million, and so on. While that level of coverage can seem intimidating to afford, it can often cost less than a dollar a day!
So if you collect rare novelty items, own property, or run a business, umbrella insurance is a safe bet on the stable future of your assets, whatever they may be.