SUV on side of snowy road crashed into a fence

Get Extra Peace of Mind with Umbrella Liability Insurance

Liability claims routinely result in awards or settlements in the hundreds of thousands to millions of dollars, with the cost of legal fees on top of that. An unexpected calamity could result in such a claim being made against you, placing your assets and financial well-being in serious jeopardy.

A personal umbrella liability policy could protect you against large awards or settlements for loss, injury, or even death caused by negligent acts. It is designed to provide liability protection over and above the policies you currently have, such as automobile, homeowners, and watercraft insurance.

Expect the Unexpected

Here are some real cases and their results.

  • One boy shot another boy with a bb gun while playing at their friend’s house. Compensatory Award: $500,000
  • A 12-year-old boy was bitten by a neighbor’s two dogs, suffering injuries to his lower legs and thigh. Compensatory Award: $500,000
  • A homeowner improperly installed his pool diving board and was later sued by the next homeowner after use of that board resulted in serious injury. Out-of-court Settlement: $2,500,000
  • A 6-year-old boy suffered partial permanent impairment of his arm and hand while being lifted over a friend’s fence to retrieve a ball. Award: $1,220,000
  • A teenage driver hit a parked truck, causing his passenger serious head trauma. Out-of-court Settlement: $1,875,000

How well protected are you and your family from an excess liability claim?

Why Do I Need Umbrella Insurance?

If you already have auto and homeowners insurance, you may wonder why you need additional liability coverage.

We live in a very litigious society, and the monetary awards associated with liability lawsuits can be astounding. Your current policies may be adequate enough to protect against minor misfortune but very likely will not be enough to cover grievous financial loss.

More Benefits

Besides providing increased liability limits, a typical personal umbrella insurance gives you:

  • Possible protection against claims that are not covered by your other personal policies.
  • Coverage anywhere in the world.
  • Coverage for attorneys’ fees associated with claims against you that are covered by your personal umbrella, but not by your primary policies. These are paid in addition to your policy limit.

Uninsured/Underinsured Liability

Many umbrella liability claims stem from severe auto accidents, but not all policies are built the same. A typical umbrella would cover any claim made against you by an injured party, such as a passenger, pedestrian, or other motorist.

But what if the other driver is at fault and is uninsured, or has insufficient insurance to cover the damages they’ve caused you? In such cases, your umbrella policy likely would not apply.

Nationwide, 1 in 8 drivers is uninsured. By rounding out your umbrella policy with Uninsured/Underinsured Liability coverage, you and your passengers will be better protected should the at-fault party be unable to pay for your injuries.

Get a Quote!

The level of protection you need could easily vary from that of the next person, so it’s best to discuss the details with an expert. Enlist the guidance of a specialist by calling Banas & Fickert Insurance Agency at 413-527-2700. Our umbrella policies can guard you against unwanted and unexpected exposure.

Additional Resources

Personal Liability Umbrella Insurance
What is Personal Umbrella Insurance?
Do You Need Umbrella Insurance? What Is It and How Can It Help You?
Umbrella Coverage for Preventing Your Ruin
The Importance of Personal Liability Insurance

Massachusetts Umbrella Liability FAQs

Think of your auto or home insurance as a raincoat—it keeps you dry during a normal storm. An Umbrella policy is for the hurricane. It provides excess liability coverage that kicks in once the limits of your primary policies (home, auto, boat) are exhausted.

  • The Reality: If you are sued for $1 million after a car accident but your auto policy only covers $250,000, you are personally responsible for the remaining $750,000. An Umbrella policy pays that difference so you don’t have to liquidate your savings or future wages.

Absolutely not. In fact, middle-income families often have the most to lose. If you own a home, have a retirement savings account, or earn a steady paycheck, you are a target for a lawsuit.

  • Wage Garnishment: In Massachusetts, if a judgment exceeds your insurance limits, the court can garnish your future wages for years. Umbrella insurance is an affordable way (often less than $1/day) to protect the lifestyle you’ve built and your future earnings.

Standard umbrella policies protect you when you are sued. But what if a drunk or uninsured driver hits you and causes life-changing injuries?

  • The Gap: With 1 in 8 drivers nationwide being uninsured, there is a real risk the at-fault driver cannot pay for your medical care.

  • The Solution: We strongly recommend adding an Uninsured/Underinsured Motorist (UM/UIM) endorsement to your Umbrella policy. This ensures you have access to million-dollar limits for your own recovery if the other driver has state-minimum coverage.

Yes! One of the biggest advantages of a Personal Umbrella Policy is that it typically offers worldwide coverage. Whether you are renting a car in Europe, traveling for business, or on vacation in the Caribbean, your liability protection travels with you. It also frequently covers legal defense fees for lawsuits abroad, which can be astronomically expensive.

To purchase an Umbrella policy, you generally must hold “underlying limits” on your primary policies. This acts as the first layer of defense.

  • Typical Requirements: Most carriers require you to carry Auto Liability limits of at least 250/500 (per person/per accident) and Homeowners Liability of $300,000 or $500,000.

  • The Benefit: If your current limits are lower, we can help adjust your primary policies to qualify you for the Umbrella, often resulting in better overall protection for a small price difference.

Surprisingly, often yes. Many Personal Umbrella policies include coverage for “Personal Injury” (which is different from “Bodily Injury”). This can include lawsuits regarding libel, slander, defamation of character, or invasion of privacy. In the age of social media, where a comment can lead to a lawsuit, this is a critical layer of modern protection.