Liability means responsibility. The main reason you carry insurance is to show acceptance of your responsibility in case of bodily injuries or property damage to others caused by your actions or on property you own. Your liability coverage can be compared to a raincoat for coverage, but sometimes "when it rains, it pours," and an umbrella is needed-a personal liability umbrella policy. This policy provides you with additional liability above and beyond your underlying auto and home policies. It protects assets if you're ever faced with a claim or lawsuit that exceeds the limits of your auto or home policy.

Do you have enough liability coverage to protect your assets if a large claim or lawsuit is brought against you? Think about these questions:

We don't like to think that accidents will lead to lawsuits-especially by people we know-but it can happen. Today, your chances of becoming the target of a huge lawsuit are growing. One unfortunate situation could trigger a domino effect. Your hard-earned savings, personal property, and even future earnings could all come tumbling down. Almost every state has financial responsibility laws that hold drivers accountable for bodily injury and property damage resulting from car accidents, and personal assets of the at-fault driver could be seized as a result of a lawsuit. The same goes for home and watercraft owners.

We live in a time when million-dollar verdicts are no longer rare and when more families have valuable assets to protect: vacation homes, investments, and rental property. The average auto and homeowner liability limit is $300,000 per occurrence-a personal umbrella liability policy is used when those limits are exhausted, and the added liability protection can be had without a large added cost; an additional $1 million often is less than $200 per year.

Check with your agent on what underlying limits you need and optional endorsements that can be added to the umbrella policy. If you own a business, you need a commercial liability umbrella policy. TPW