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  • Writer's pictureJeremy Yorke

Would you risk a lot on a little?

Don’t Risk a Lot on a Little!

About Insurance and What is Liability?

Often when we think about insurance, we consider insuring against damages to our property. This property is important to us and definitely worth protecting. But, there’s another side of insurance that’s arguably much more important, and taking this side of insurance lightly could impact your assets the hardest.  Welcome to the wild world of Personal Liability.

Liability is your financial obligation to another party for injuries or property damage caused by you.  Liability coverage is a promise in an insurance policy to defend you in court and pay what you owe another party for injuries or property damage you cause, up to the liability limit you chose.  Luckily, most insurance policies bundle direct physical loss protection and liability protection together. Despite this, most people are considerably under-insured and unaware that better insurance coverage would cost them very little.  

Buying Liability Coverage

When thinking about liability coverage you should consider your suability, including current assets and future earnings.  The United States is the most litigious nation in the world, and there are multiple scenarios that could result in you getting sued. Think about car accidents, for example. Unfortunately, car accidents are quite common and happen fast in today’s world.  With increased gadgets and technology in our cars, coupled with the currently out-of-control cost of medical treatment, the cost of an accident can add up very quickly. With insufficient liability limits, you could be on the hook for some of these expenses.  Another example: imagine a houseguest or their child gets hurt while on your property. Injury treatment and rehabilitation alone could eat up your homeowner liability limit. And what about emotional pain and suffering? You’re held responsible for that too.

Excess Liability - Personal Umbrella Liability

If you don’t have enough protection, what can you do?  Introducing the best value in insurance, the Personal Umbrella Policy!  A Personal Umbrella Policy acts as a second layer of liability coverage that sits on top of your other personal liability coverages.  It defends you and pays legal judgments against you when a covered lawsuit exceeds your primary liability insurance limits. A personal umbrella policy also provides extended coverage for defense costs and gap coverage (coverage for lawsuits that are excluded by primary insurance).  Best of all, an umbrella policy is amazingly inexpensive, which is why I consider it the best bargain in insurance.


Accidents happen. Don’t risk a lot on a little (bit of insurance coverage)!  When considering your liability, it is best to take a holistic approach, taking everything into consideration.  Think about where you are, where you’re going, what you have, and what you want. We recommend higher underlying liability limits and periodically reviewing your coverage needs.  Also, consider a personal umbrella policy for extra peace of mind!

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