You don’t have to be a millionaire to be sued like one. A single lawsuit can end up costing hundreds of thousands or even millions of dollars. Even even if you win, defense costs can be six figures. And the greater your assets, the more you potentially have at risk. An Umbrella or Excess liability policy can help protect against personal liabilities that could cost you a substantial chunk or all of your assets (even with the liability coverage provided by your auto and homeowners policy).

For example:

• As you turn a corner in your car, you or a family member accidentally injures a successful entrepreneur in the crosswalk. Medical costs, lost earnings and damages amount to millions. And you are responsible.
• You’re having a party in your home, and a guest slips and falls on your slippery walk and breaks her leg.

• You volunteer on the board of directors of your condominium association. The board installs a playground with a faulty swing and a fellow association member’s child is injured. You are sued as a board member.