Wednesday, September 12, 2018

The Benefits of Umbrella Coverage are Undeniable

Umbrella Coverage can protect your financial future

By Edward L. Blais, JD, CIC
President, Blais Insurance 

With the United States earning a spot in the top 10 most litigious countries in the world, it can be easy to forget that individuals as well as companies can be named as defendants in a lawsuit. Lawsuits can arise from a number of different scenarios, but it is most problematic when the alleged damages exceed a defendant’s insurance policy limits. To help protect your financial future, Blais Insurance would like to share information about the importance of umbrella insurance.

Simply stated, umbrella insurance is an extra layer of liability coverage if a claim exceeds your auto, home, or boat insurance policy limits. Many people do not think about umbrella coverage, assuming they are fully protected in the event of an accident or expensive claim.

While traditional forms of coverage, such as auto or homeowners insurance, provide an adequate level of coverage for most scenarios, individuals and families can be left financially vulnerable if they are held responsible for losses that eclipse those individual policy limits.  

In order to fully appreciate the importance of umbrella insurance, simply consider the following scenario. Imagine you are driving your vehicle when you take your eyes off the road to tend to your child or pickup your iced coffee. As your eyes wander, you are suddenly involved in an automobile accident that injured several passengers from the other vehicle.

Financial uncertainty will begin to unfold if the claim amounts to hundreds of thousands of dollars or more, which typically exhausts the insurance limits of most policyholders. At this point, umbrella insurance would kick-in and cover the difference. This is just one example where umbrella insurance can help provide policyholders with peace of mind.

In Rhode Island, defendants that are held responsible for claims that exceed their insurance policy limits may have to forfeit a percentage of their future income for many years to come. And for the cost of a single outing to a fast food restaurant once a month, individuals can rest easy knowing that they are protected from a wide range of unforeseen accidents.

As the number of litigations in the U.S. continues to climb, we encourage you to be proactive about protecting your financial future by calling Blais Insurance at 401-725-0070. Our team of agents will be able to answer any questions you have about umbrella coverage, and we can recommend the policy limits that make the most sense for you and your family.