Unfortunately, we live in a litigious society. And some individuals, particularly those with greater wealth, have a higher-than-normal loss exposure to lawsuits (International Risk Management Institute). This tendency is often referred to as a “suability factor” and can be determined by examining the following:
- Size of savings account and stock portfolio
- Size of real estate holdings
- Current family income
- Profile in the community and media
- Leadership activities on not-for-profit boards
- Leadership activities in Homeowners’ Associations
- Future income opportunities
People with a low suability factor should strongly consider securing a personal umbrella policy with at least $1 million in liability limits. Individuals with a high suability factor should nearly always have a personal umbrella policy with at least a $2 million limit.
Policy limits are available as high as $15 or $20 million, when circumstances warrant.
Remember that these are relatively inexpensive policies that provide excess liability coverage over what is offered in homeowners and personal auto insurance policies. In some cases, they provide broader liability coverage than the underlying policies. More importantly, they can provide you with greater peace of mind, knowing that your personal assets are secure – even if you are the target of a lawsuit.
Schwartz Insurance Group would be happy to help review your current situation to ensure you have the coverage you need. Contact us at any time.