WHO NEEDS AN UMBRELLA POLICY? By Bill Wilson
I used to frequent an online insurance discussion board. Consumers often asked coverage questions that agents or other insurance professionals would answer. However, so many answers were wrong, at least arguably wrong, that I found I was spending a couple of hours a day correcting misleading answers. For example, when a consumer asked if he needed an umbrella
4
policy, an agent responded to several affirmative answers from other agents with, “Sorry world – most people (99%) DO NOT need umbrellas. It’s just reality.” Someone else agreed, opining that only rich people with a lot of assets needed umbrella policies.
to say, this is especially true for
I caught some flack when I responded, “Since we’re discussing reality, here’s a dose: EVERYBODY needs an umbrella policy.” Needless
policies, defense costs are usually
FEBRUARY 2024
wealthier people, though one might argue that an exception could be someone like Taylor Swift and her new-found billionaire status. On the other hand, even for Ms. Swift, an umbrella could be a great value purchase because, like most liability unlimited, and she’s probably more likely to be sued by someone than the typical person.
