Keep Your Umbrella Handy

In 2017, the U.S. had a record 11.5 million millionaires, up from 10.8 million in the previous year. An increase in personal wealth may bring greater financial flexibility; it may also bring greater liability. Individuals with high net worth, or those who are perceived to have high net worth, may be more likely to be sued. If that’s not concerning enough, personal injury claims can often reach into the millions.1

 

Umbrella liability insurance is designed to put an extra layer of protection between your assets and a potential lawsuit. It provides coverage over and above existing automobile and homeowners insurance limits.

 

For example, imagine your teenage child borrows your car and gets in an accident and the other driver is seriously injured. The accident results in a lawsuit and a $1 million judgment against you. If your car insurance policy has a liability limit of $500,000, that much should be covered. If you have additional umbrella liability coverage, your policy can be designed to kick in and cover the rest. Without umbrella coverage, you may be responsible for paying the other $500,000 out of pocket, which could mean liquidating assets, losing the equity in your home, or having your wages garnished.

 

Umbrella liability insurance is usually sold in increments of $1 million and generally costs just a few hundred dollars a year. It typically covers a broad range of scenarios, including bodily injuries, property damage caused by you or a member of your household, libel, slander, false arrest, and defamation of character.

 

Deciding whether liability coverage is right for you may be a question of lifestyle. You might want to consider obtaining a policy if you:

 

* Entertain frequently and serve your guests alcohol

* Operate a business out of your home

* Give interviews that may be published

* Employ uninsured workers on your property

* Drive a large number of miles or have teenage drivers

* Live in a manner that gives the appearance of wealth

* Have a dog, especially if the breed is known to be aggressive

* Own jet skis, a boat, motorcycles, or snowmobiles

 

Even if you don’t yet have a tent in the millionaire camp, you may want to consider the benefits of liability insurance. After all, you don’t have to be a millionaire to be sued for a million dollars. Anyone who is carefully building a financial portfolio most likely wants to limit their exposure to risk. In these cases, umbrella liability can be a fairly inexpensive way to help shelter current assets and future income from the unexpected.

Office Locations

Louisville

2201 High Wickham Place
Louisville, KY 40245
502.753.0609

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Suite 110
Cincinnati, OH 45241
513.842.1700

Bowling Green

1048 Ashley Street
Suite 301
Bowling Green, KY 42104
270.843.4115

Indianapolis

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Suite 170
Indianapolis, IN 46250
877.634.9757

Grand Rapids

607 Cascade West Parkway
Grand Rapids, MI 49546
844.476.2744

Elizabethtown

2901 Ring Road
Elizabethtown, KY 42701
270.990.9000

Lexington

176 Pasadena Drive
Suite 3B
Lexington, KY 40503
859.286.5085

Paducah

4730 Village Square Drive
Suite 100
Paducah, KY 42001
270.443.8711

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Portions of the content on this website were prepared by Marketing Library Inc.

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Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group. View our privacy policy here.

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