Why do I need an Umbrella Liability policy? What’s the benefit?

Most people believe Personal Umbrella Liability Insurance (PULI) is necessary only if you are wealthy and/or lead a “wild” lifestyle. However, accidents do happen. No matter how cautious you are, you could be sued because you injure someone or damage someone’s property. PULI protects your assets if you (or a household member) injure another person or damage someone’s property. It’s designed to protect you against a catastrophic lawsuit by providing expanded coverage and supplementing the basic liability coverage provided by your homeowners/renters and auto insurance policies. This protection is designed to “kick-in” when the liability coverage on your other policies has been exhausted.

If I'm insured under a professional liability policy, do I still need this plan?

Your professional liability policy covers only allegations, lawsuits and judgments for acts, errors or omissions within the scope of your employment. The Wright USA PULI plan covers you and every member of your household against personal liability such as injuries or property damage for which you or they may be responsible.

How much personal liability protection do I need?

It really depends on your assets and budget. Some experts suggest carrying at least enough PULI coverage to protect your total net worth. If you're particularly successful or highly visible in your community, you may want to increase your coverage to the market value of your major assets, such as your home and investment portfolio, because you are more likely to be a target of a lawsuit and more likely to be hit with higher damage awards.

You probably need more liability insurance than you think. A lot of factors determine the amount of coverage you need. Your financial status, lifestyle, and existing coverage are all relevant, but in liability lawsuits, judgments can, and often do, exceed net worth. For example, standard homeowners’ policies usually provide $100,000 to $300,000 worth of liability coverage, but in today’s society it’s not unusual to hear of $2 million, $10 million, and even $20 million liability judgments. If someone gets injured in your home, or if you cause a serious accident, you could be hit with such a judgment. Without a personal umbrella liability policy like Wright USA offers, a large judgment against you could cost you all the assets you have now, as well as possible future earnings and inheritances.

Do I still need my automobile and homeowner policies?

Yes. PULI is a supplement not a substitute for these policies. Since PULI supplements your primary coverage, you must have personal liability insurance as is usually provided in homeowners, renters or condominium liability policies. You will also need to maintain required limits of primary insurance for autos, watercraft, or recreational vehicles you or your household members have. The minimum amounts for applicable coverages you must maintain are detailed in the Required Underlying Insurance Schedule directly below.