Do You Have The Gold Standard in Protection?
Have you ever heard of something described as "The Gold Standard"? Maybe someone described their favorite classic car as "the gold standard" of American automobile manufacturing, or maybe it was their favorite band, computer brand, or hot sauce. Whatever it was, to them, it is the best of the best.
In the United States, the gold standard was a monetary system in which the value of the U.S. dollar was directly tied to the value of gold. Under this system, the U.S. government agreed to redeem U.S. dollars for a set amount of gold. The gold standard was in place in the United States from 1879 to 1933. Even though the system has been gone for nearly a century, the term is still widely used to refer to the best version of something against which all else is measured.
In liability insurance, there is a gold standard of protection as well. The Personal Umbrella.
A personal umbrella policy is an important form of liability coverage for anyone who wants to protect their assets and financial well-being. This type of insurance provides additional liability coverage beyond the limits of your standard home, auto, boat, or other insurance policies that have liability coverage.
A personal umbrella policy can provide coverage for a variety of different claims, such as:
Auto accidents: If you are found liable for a car accident that results in injuries or property damage, a personal umbrella policy can provide additional coverage to help pay for the costs.
Slip and fall accidents: If someone is injured on your property and you are found liable, a personal umbrella policy can help cover the costs of medical expenses and any settlements or judgments.
Dog bites: If your dog bites someone and you are found liable, a personal umbrella policy can provide additional coverage to help pay for the costs of medical expenses and any settlements or judgments.
Defamation: If you are sued for defamation, a personal umbrella policy can provide additional coverage to help pay for the costs of legal defense and any settlements or judgments.
Invasion of privacy: If you are sued for invasion of privacy, a personal umbrella policy can provide additional coverage to help pay for the costs of legal defense and any settlements or judgments.
Libel or Slander: If you are sued for libel or slander, a personal umbrella policy can provide additional coverage to help pay for the costs of legal defense and any settlements or judgments.
When you are held liable for damages or injuries caused to another person, your standard liability coverage may not be enough to fully cover the costs. For example, if you are found liable for a car accident that results in serious injuries, the medical expenses and lost wages of the other party may exceed the limits of your auto insurance policy. In this case, a personal umbrella policy would provide additional coverage to help pay for these costs, instead of you paying out of pocket.
Let's look at an example:
Imagine that John, a young professional, was driving home from work one evening when he rear-ended another car at a red light. The accident caused significant damage to both cars and resulted in injuries to the driver and passenger of the other car. The medical expenses for the injuries totaled $150,000 and the cost of the vehicle, which was totaled, was $50,000.
John's auto insurance policy had a liability limit of $100,000 in bodily injury per accident. However, the total cost of the damages and injuries came to $200,000, which exceeded the limit of John's policy.
Luckily, John had a personal umbrella policy with a liability limit of $1 million. The personal umbrella policy provided additional coverage to help pay for the remaining $100,000 of the damages and injuries caused by the accident. Without the umbrella policy, John would have been personally responsible for paying the remaining $100,000 out of his own pocket.
In this scenario, John's personal umbrella policy proved to be a wise investment as it provided additional protection for him, and helped him to avoid the financial burden of this accident. Even after what could have been a catastrophe, his policy was more than sufficient to take care of the situation. The Gold Standard.
Another benefit of a personal umbrella policy is that it can provide protection against liability claims that may not be covered by your standard policies. For example, if you are sued for defamation or invasion of privacy, your standard policies may not provide any coverage. A personal umbrella policy can provide you with additional protection in these situations.
Lets look at another example:
Imagine that Sarah, a small business owner, runs a blog where she writes about various topics related to her industry. One day, she wrote an article about a local competitor and made some negative statements about their business practices. The competitor felt that the statements were defamatory and decided to sue Sarah for damages.
The legal fees for Sarah's defense amounted to $50,000 and the competitor was awarded a judgment of $100,000 in damages. Sarah's general liability insurance policy did not cover defamation claims, and she would have been personally responsible for paying the legal fees and judgment.
However, Sarah had a personal umbrella policy with a liability limit of $1 million. The personal umbrella policy provided sufficient coverage for both the judgement and the cost of her legal representation. Without the umbrella policy, Sarah would have had to pay the legal fees and judgment out of her own pocket, which could have been financially devastating for her and her business. Instead, the umbrella absorbed the hit to protect her. The Gold Standard.
Although umbrellas are a powerful defense from losses stemming from liability, nothing is completely bulletproof. It is important to note that some personal umbrella policies may have limits on the amount of coverage for legal defense costs. It's also important to keep in mind that a personal umbrella policy will only provide coverage for claims that are not specifically excluded in the policy, such as criminal activities or intentional acts. It's always a good idea to read the policy and talk to your insurance agent so that you understand the coverage, exclusions, and limits of your personal umbrella policy.
Having a Personal umbrella policy provides the gold standard in protection for your assets. If you are sued and found liable for damages, your personal assets such as your savings, investments, and even your future earnings may be at risk. No matter the amount of assets you have, a personal umbrella policy is an important part of protecting your financial health. A lawsuit resulting from an accident can lead to enormous financial losses, and the costs of defending against these lawsuits can be significant as well. A personal umbrella policy provides the additional liability coverage you need to protect your assets and long-term financial well-being.
In order to qualify for a personal umbrella policy, you typically need to have a certain amount of underlying liability coverage in place, such as homeowners, renters, or auto insurance.
Generally, to be eligible for a personal umbrella policy, you need the following:
You need to have an existing liability coverage, usually homeowners insurance or auto insurance, as a personal umbrella policy provides additional liability coverage.
You need to have a good insurance history.
You will need to meet certain minimum liability limits on your underlying insurance policies, such as $300,000 for auto insurance or $300,000 for homeowners insurance.
You may also have to answer some questions about your assets, as personal umbrella policies are intended to protect your assets in case of a lawsuit.
Personal umbrella policies are typically sold in coverage increments of $1 million, and are offered at an affordable premium for most people. Having a personal umbrella policy is a low-cost way to protect yourself and your assets from the potential financial ruin of a lawsuit. Don’t leave your financial security up to chance, get a quote for a personal umbrella policy today, and get the Gold Standard.