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  • Erich Held, CIC

Do I need an umbrella liability policy?

As an Insurance Agent in Illinois I have seen the claims that most people say “It will never happen to me”. Many times those claims are lawsuits. One of the best ways to protect yourself and your family is having an umbrella liability insurance policy.



An umbrella liability policy in Illinois provides additional liability coverage beyond your home, auto or other policy liability limits. On occasion, it can be the only option to provide liability coverage.


Ask yourself a simple question: If I were injured in any way, I would sue some for $____?

A. $10,000 B. $100,000 C. $1,000,000 or more D. I wouldn't sue


The question is very generic. But the point here is we can't predict how you will get injured or to what extent. The answer to the question above, can be that all options could be correct. The main question then becomes: Do you have enough liability coverage if someone sues you?


Everyone should consider an umbrella liability policy. Here are some key reasons to consider having an umbrella liability policy.

Do you:

  • Own a home or auto?

  • Own any animals?

  • Have kids?

  • Post on social media?

  • Generate above average income?

  • Entertain at home?

  • Rent property?

  • Own any toys? (ie: boat, ATV, recreational vehicle, etc)

  • Teach youth sports?

  • Volunteer?

If you answered yes to any of the above, you should have an umbrella liability policy.


So let's consider some (not all) scenarios you may get sued:

  1. You get into a car accident and the person you hit has a broken back and can't work.

  2. Your dog bites a neighbors child and the injury causes loss of use of that hand.

  3. You post something online and it ruins a person's/businesses reputation because what you posted was wrong/inaccurate.

  4. You accidentally kill someone in a car accident.


If you get sued and a judgment is awarded, you may lose any assets such as property and savings. Even if you feel you don't have any assets to lose, are you willing to risk future earnings due to wage garnishments if you don't have enough assets to pay the judgment. How would that impact your financial position? You may never be able to build those assets. How would wage garnishment impact your retirement? How would a reduction of income impact your family?


An umbrella liability policy in Illinois can be a great option. It can put a lawyer between you and the person suing you. It can provide legal defense in addition to funds to pay the judgement. An umbrella is fairly inexpensive, in comparison to a potential claim. An umbrella policy can cost less than $1 per day for a $1 million dollar limit. Keep in mind you can easily go up to $10 million in coverage limits (even more if needed).


Choosing to set up an umbrella liability policy is a decision you must make by realizing “it can happen to me and I can be sued.” Protect yourself, your family and your future with an umbrella liability policy.



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