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A heavy equipment manufacturer in California received the same shock; its umbrella liability coverage bill doubled to $8 million.
She recommends a minimum of $1 million dollars in liability coverage and encourages owners to take out personal umbrella liability coverage reflecting an owner's total net worth.
The Hartford plans to withdraw five of its companies -- the ones that sell through independent agents -- from personal auto insurance and "umbrella" liability in Michigan.
Before you agree to pay the $4.95, however, check your personal auto and homeowner's policies and any umbrella liability coverage you may carry.
That's why you need insurance for your home, auto and an umbrella liability policy to protect you if you're sued.
Finally, if your assets exceed the limits on your liability insurance, you may want to purchase umbrella liability insurance.
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They have an extra insurance policy, known as umbrella or excess liability coverage, which takes care of their liability for the lawsuits and medical bills of the auto accident victim — or of the teenage guest who dives into the shallow end of the swimming pool or the deliveryman who trips on the front steps.
Did our umbrella insurance cover liability for dog bites?
While umbrella or excess liability policies, which everyone of any means should have, cover injuries of the slip-and-fall variety, they don't always cover liability for employment practices.
Ms. Salvatore noted another benefit of having both forms of coverage from one company: the ability to purchase $1 million of "umbrella" or "excess liability coverage" for both policies for about $200 or $300 more.
A $3 million umbrella on your liability insurance policy might cost you $300 and will protect you from (most) megaverdicts for torts like bad driving.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com