Personal Umbrella
Asset Protection
For business owners, a personal umbrella is a critical asset protection tool — not just a supplemental insurance coverage. Business equity, real estate holdings, investment accounts, and personal guarantees on business debt all represent assets that can be reached by a personal liability judgment. The umbrella is the last line of defense between a serious claim and your accumulated wealth.
Personal Umbrella
What You Need to Know About Asset Protection
Business Equity Exposure
Business equity is a personal asset that can be attached in a personal liability judgment. If you're personally liable for a $2M judgment and carry only $300,000 in auto liability, the remaining $1.7M can be pursued against your personal assets — including your ownership interest in the business.
Real Estate and Investment Accounts
Personal real estate holdings, brokerage accounts, and retirement accounts (in some circumstances) are all exposed to personal liability judgments. The umbrella provides the buffer that prevents a single serious accident from requiring liquidation of these assets.
Business Activity Exclusion
Personal umbrella policies exclude business activities. This creates a gap for business owners who have activities that blur the line between personal and business. Working with an advisor who reviews both your commercial and personal coverage ensures no activity falls through the gap between the two programs.