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Illinois Umbrella Insurance

How To Protect Yourself And Your Family If You Get Sued.

In this report, you will discover:

  • How easy and common it is to be a target of a lawsuit
  • How to get massive protection for just pennies a day
  • What you should know about what isn't covered with Umbrella Insurance
  • Tips on how to save money
  • Insurance jargon demystified. What you are really getting?

If insurance is for a rainy day, umbrella insurance is for a storm. A day when someone hits you with a lawsuit for hundreds of thousands, even millions of dollars.

Think it will not happen to you? Think for a minute about how lawsuit-happy this country is. You can't go online these days without reading about someone suing someone else. You read the article and say, "That's crazy. No way someone should be sued for that."

A lot of lawsuits aren't crazy at all. Most lawsuits get settled and often, the person being sued winds up having to pay the person who brought the lawsuit. Not to mention the fees the defendant must pay to his or her attorney.

How Far Will Your Current Protection Really Go To Protect You?

Example - You or one of you employees are at fault in an auto accident that causes serious injuries to the other driver and/or passengers in the care you hit. Your auto insurance has liability limits of $100,000 per person and $300,000 per accident. (These are common limits, even for people with a lot of assets).

How far do you think $100,000 will go, especially if the persons involved suffer injuries that keep them from working for months or even years? The accident victims could sue you or your business for medical bills, lost income, even pain and suffering. In this example, $100,000 is not nearly enough coverage.

Let's say your business gets hit with a judgement for $250,000 in the case of one person involved in an accident with one of your drivers. Your business auto liability insurance will cover the first $100,000 and your company is stuck with the rest. Again, this doesn't include the legal fees you will have to pay to your attorney.

If you do not have a combination of insurance and cash on hand to pay the judgement, the court can order liquidation of your assets (including your family's home or business). In the state of Illinois, if you still owe money after these resources are exhausted, the court can order you to pay a percentage of your future earnings, called wage garnishment. So just imagine working the rest of your life and having 15% of your pay going to someone else. For a couple of hundred dollars a year, it's not worth the risk.

While it may seem unnecessary to carry an umbrella policy, it really isn't, particularly for people with homes, a business, or other significant assets to protect. Do you really want to hand over your home, business, savings, or future earning to someone you injure in an auto accident? It could happen, but it doesn't have to.

Umbrella Insurance Is Protection For Pennies A Day

Umbrella insurance is cheap, because it is designed for those rare rainy days. Umbrella insurance is versatile because it will provide additional liability coverage not only for your auto policy, but also for your homeowners, renters and business owners policy.

If you have "toys" like boats, motorcycles, ATVs, snowmobiles, your umbrella policy is designed to provide additional liability protection for these as well.

*Note - Umbrella insurance does not cover everything. For example, if you are sued and the court assesses punitive damages against you, these damages will not be paid by your personal or commercial umbrella insurance. What are punitive damages? They are damages awarded to someone in order to punish the person being sued. Punitive damages are awarded reckless conduct - at least what a judge or jury perceives to be reckless conduct.

You can usually purchase a personal umbrella policy with a one million dollar limit for $175 to $250 per year. A commercial umbrella policy with a one million dollar limit usually costs on average $500 to $1000, depending on the kind of industry you are in. Umbrella policies for both personal and commercial coverage depend on the number cars, homes, drivers, and assets you have. If you need a higher limit umbrella that is available; umbrella limits increase by the million. Give Frimark/Keller & Associates a call to discuss the best option for you.

How Umbrella Coverage Works

Umbrella insurance, personal or commercial, actually "sits" on top of your auto, home or renters, business, and other policies with liability coverage. Let's say you have a per-person liability limit of $250,000 on either your personal or commercial auto policy. Let's also say that you or an employee cause an accident in which the other driver or passenger is awarded $450,000 for their injuries and loss of income.

Your auto policy will pay the first $250,000 and your one million umbrella will kick in the remaining $200,000 you still owe.

Since an umbrella policy provides coverage over your auto, home or renters, and business liability limits, some insurers that offer umbrella policies require you to have your auto and home or your business policies with the same company. This usually isn't an issue because most insurers are happy to provide these coverages and most of the time then offer a multi-policy discount. Frimark/Keller & Associates also represents companies that will write "stand-alone" umbrella policies.

Most insurance companies that offer umbrella coverage require you to carry higher liability limits on your auto, home and business owners policies. The minimum limit on your home is $300,000 or $500,000 and on your auto, is $250,000 per-person/$500,000 per accident. Increasing these limits on your underlying policy is usually minimal, give your agent a call to check.

Frimark/Keller & Associates' licensed agents will be happy to assist you in reviewing your options and finding the best combination of coverage and value for your budget, your family's and business' needs. Call us to discuss any questions on umbrella coverage further.

Call 847-907-4520 today to protect your life's assets.

Frimark/Keller & Associates is a full service Trusted Choice Insurance Agency. We have protected the residents and businesses of Illinois since 1910. We offer a full array of Personal Insurance, Business Insurance and Life Insurance products.