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Umbrella Insurance – Why You Need It

By:  Andrew S. Prince, Esq.
1-(800)-TEAM-LAW (832-6529) 

Call With Any Questions or Concerns!

What happens when you are found to be liable in an accident and a big award is entered against you?  Let’s say you accidentally hurt a high-income executive, whose injuries prevent him or her from returning to work.  This situation could easily result in a judgment or settlement that far exceeds the limits of your primary home or auto insurance policies.  Without additional coverage, your life savings could be wiped out.

Typical liability insurance coverage is included as part of your home or auto policy to cover an injured person’s medical expenses and lost wages and pain and suffering due to negligence on your part.  The liability coverage contained in your policy also covers expenses associated with your legal defense, should you find yourself on the receiving end of a lawsuit.  Once all of these expenses are added together, the total may exceed the liability limits on the home or auto insurance policies.  Once insurance coverage is exhausted, your personal assets could be taken to satisfy the judgment.

There is an affordable option that provides you with added liability protection.  It is relatively cheap.  Umbrella insurance is a type of liability insurance policy that provides coverage above and beyond the standard limits of your primary home, auto or other liability insurance polices.  The term “umbrella” refers to the manner in which these insurance polices shield your assets more broadly than the primary insurance coverage, by covering liability claims from all policies “underneath” it, such as your primary home or auto coverage.

With an umbrella insurance policy, you can add an excess additional $1 million or more in liability coverage to defend you in liability actions.  The umbrella coverage kicks in when the liability limits on your primary policies (auto and home) has been exhausted.  

Generally, umbrella insurance is pure liability coverage over and above your regular policies.  It is typically sold in million-dollar increments.  These types of polices are also broader than traditional auto or home polices, affording coverage for claims typically excluded by primary insurance polices, such as claims for defamation, false arrest or invasion of privacy.

Get a quote today!  If you have assets, you need an umbrella policy.  Any questions, call or email Andrew S. Prince.  There is never a charge for a legal consultation.   

For your free consultation, contact Andrew S. Prince at (732) 388-5454 or email him at  

Andrew S. Prince, Esq.
136 Central Avenue, Clark, NJ 07066
(732) 388-5454
1 (800) 832-6529
(732) 428-1509 — Fax

Additional Offices in Edison, East Brunswick, Jersey City, Newark, Orange, Perth Amboy and Westfield, New Jersey.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.