61 Umbrella Liability copyright dated: 09/11/11 Learn How to Protect Your Income & Your Assets Against the Cost of a Civil Lawsuit According to the Insurance Information Institute every year 1 in 12 Americans will be sued. [in fact] a civil lawsuit is filed in the United States every 30 seconds. We live in a litigious society. [and] There are plenty of attorneys who specialize in filing lawsuits on behalf of victims who are physically injured or financially damaged. Even when we are not directly responsible for the cause. Like a guest who leaves your home after having a few cocktails and gets into an accident. [so] no matter how careful
you try to be you may one day be sued and the cost to defend yourself against a personal injury lawsuit plus the expense of a civil judgment or settlement including medical bills / legal fees / lost wages / [and] compensation for pain and suffering can amount to hundreds of thousands or even millions of dollars. Of course your first line of defense or protection is your auto or home insurance. But most auto and home insurance policies typically provide only $300,000 of liability coverage. [and] Being sued for more than $300,000 is almost a certainty when someone is killed or permanently disabled. [which means that] You could be forced to pay any additional settlement expenses out of your own assets or from your own income. [so] One injury accident is all it takes and you could lose everything you own your savings / your income / your home / your business / [even] your inheritance
[for example] Derek and Charlene hosted a Christmas party in 2002 and when one of their guests left their home after having a few cocktails she got into an accident in which both she and another couple were seriously injured. Derek and Charlene were eventually implicated in a lawsuit and held liable for more than 2 million dollars. Their homeowners insurance coverage was limited to $300,000. [so] to keep from losing their home they were forced to declare bankruptcy and ordered to pay restitution out their monthly income for the next twenty years. So how can you protect your income and your assets from the cost of a lawsuit that can financially ruin you? Umbrella Liability Coverage It's comprehensive, low cost peace of mind insurance that can protect everything you own your entire net worth PLUS you future income against legal liabilities.
Umbrella Liability Coverage pays when you are legally obligated and financially responsible for economic damages that exceed the limits of your other policies. [and with] Umbrella Liability Insurance you're not just getting higher liability limits you're also getting broader coverage against risks that aren't typically covered under your auto or home policies. [for example] One weekend at the lake Paul and Anna allowed a friend of theirs to drive their ski boat. Their friend accidentally hit a water skier with the bow of the boat. The skier was knocked unconscious and had to be rescued from drowning. Unfortunately, the skier's neck was also broken by the impact leaving her paralyzed from the waist down. The lawsuit amounted to almost two million dollars. [and] Although their friend was the one driving the boat and was clearly at fault
he was not covered under his own insurance. [and because] It was their boat and they had given him permission to use it Paul and Anna were held financially responsible. However, their boater's policy limited their liability coverage to only $150,000. Fortunately for Paul and Anna they also had a $5 million umbrella liability policy which DID cover the accident and DID pay off the judgment. So ask yourself this... in a litigious society such as ours where every year one in twelve citizens are sued and civil court judgments on personal injury cases can easily exceed the limits of your auto or home insurance coverage does it make sense to risk your financial security over an honest error?
or an unfortunate mishap? or worse be held financially responsible for someone else's accident? Or does it make better sense to secure a low cost umbrella liability policy that will protect both your assets and your income from the expense of a personal injury lawsuit that could cost you hundreds of thousands or even millions of dollars? [after all] isn't it better to know that you've protected yourself for as little as $10 or $20 a month than to regret that you could have protected yourself and chose not to?