No one likes to face a legal challenge, but such unfortunate circumstances all too often can become a very real problem, particularly for business owners and anyone with any kind of valuable property or other assets. And the more someone owns, the more likely he or she is to face at least one lawsuit for nearly any reason during a lifetime. Even if a court case is frivolous, the cost of legal defense can be high.

But having a good umbrella plan can protect against lawsuits and other liabilities arising from business practices, property use and other factors. Such policies were created to pay what auto, home, watercraft and other types of insurance coverages do not when their policy limits are reached in the event of someone suffering damage, injuries or death as a result of use of the insured properties.

And umbrella coverage is considered to be one of the best values in insurance given they provide at least $1 million in protection for what usually amounts to less than $200 per year. And each additional $1 million in coverage generally can be had for about $100 more per year. Because such policies are secondary and only take effect when existing insurance plans have exhausted their applicable coverage limits, most plans seldom are used and make them very affordable.

Clearly, the more someone owns, such as a business, large home, extensive land or other types of properties and assets, the more he or she could lose if sued for some reason. And if owning a watercraft and regularly taking friends and others out for excursions on the water, there is a very real possibility of someone possibly falling overboard or suffering serious injury if the vessel’s use results in death or disabling injury. And that means a hefty lawsuit could be filed that easily could bankrupt the insured party if not protected fully.

But even those who do not own a great deal of assets could find themselves in costly lawsuits and facing potential judgments much greater than they ever could afford without sound protection. If causing an accident while driving and someone suffers a permanent disability preventing him or her from working ever again, even a middle class worker could win a large sum in a court case that easily could exceed any amount the defendant could afford over a lifetime. But for only a couple hundred dollars or more per year, that person could be protected with an umbrella insurance plan.

So when looking for the best way to get affordable coverage to protect against possible bankruptcy or permanent financial hardship due to a court settlement, a good umbrella policy will satisfy the needs of most people for the least amount of money.



Source by Mike Heuer

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