Why an Umbrella Policy is the Safety Net for You

A car crash occurs every 60 seconds. Water droplets falling on an umbrella.

When two or more vehicles collide, lives are at risk, and costs in the form of auto, medical and legal expenses arise.

If you were in an accident and sued would you have enough coverage?

Sometimes, it can be confusing what level of coverage you need in any one policy or coverage within a policy.

To protect your financial future in today’s litigious society, an umbrella policy may be the solution.

An umbrella policy is like a safety net for your other insurance policies. When an underlying policy’s limit is exhausted, the umbrella policy can kick in.

Take the car crash example from above.

You might have enough auto-insurance to cover the damage of the collision. But what if someone is injured and they take you to court?

In situations like these, it can be hard to predict not only how much coverage you need, but which kinds you need.

Umbrella insurance increases your liability limits.

With an umbrella policy, you are taking a step towards protecting yourself from the expenses from lawsuits and potential hardship for your family. Major accidents such as vehicular collisions or serious bodily injuries are all examples of situations where extra coverage may be needed.

However, there are other scenarios that can benefit from extra coverage too.  Here are a few situations to think about:

  • You have a momentary distraction while driving.  Even the best driver may cause an accident with serious injuries and property damage.
  • Your swimming pool attracts both invited and uninvited guests, regardless of the tallest fence or the most thorough precautions.
  • Your teenager, while driving friends to a school event, is involved in a major accident.
  • You injure a water skier while boating.


These situations can occur quickly and are usually unexpected, so having an umbrella policy in place if they happen keeps you from being completely uninsured when they occur.

Want to learn more? Contact us at Allied Insurance Managers