Any lawsuit stories where umbrella helped?

Question

I’m deciding whether or not to get an umbrella policy (property is already in LLC) and will likely get one - but was wondering if anyone had any personal stories where something happened and the umbrella was needed and was effective?  Just curious to hear cases.  Thanks.

Tony Wilcox · Answer

It is rare, but they are meant to protect you in extreme cases. Of course it would have to be a claim over the liability on the property for the umbrella to take effect. If the property is in the LLC and there a claim that is high enough to go over the property liability I have heard of people getting around the LLC and going after the owner of the llc as a heads up. For the cost of an umbrella ($180-$400) a year it is worth the protection. Also most of the companies would help in court if it came to it if you have an umbrella policy.

Matt Moylan · Answer

Here are a couple articles with some scenario's

https://www.independentagent.c...

https://www.reddit.com/r/Insur...

For the amount of coverage you receive, the price you pay is minimal.

Ian Tenney · Answer

Hey David, one way that you can approach this is making yourself less of a target for lawsuits in the first place. While there are a number of ways to do that, the best way is to work with a Management Accountant as they usually present creative ways to set up a series of entities and trusts that are able to both minimize taxes as well as protect personal and business assets

Any lawsuit stories where umbrella helped?

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