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Writer's pictureMike Hart

The Importance of Umbrella Liability Insurance

A damaged vehicle with front-end collision damage, protected by a shield and an umbrella, symbolizing extra insurance coverage and the concept of umbrella liability insurance
When accidents happen, umbrella liability insurance provides an extra layer of protection, safeguarding your family beyond standard coverage

Back in 2015, my wife, Jen, and I were heading home one late December evening after a long visit with her parents. As we approached an intersection where I had a long-standing green light, I noticed an old truck barreling toward us from crossing traffic. My instincts kicked in—I released the gas and tried to slow down on the icy road. But as I realized that a collision was inevitable, I made quick decisions to ensure the best possible outcome.


We collided with the truck’s box, which spun our car multiple times, scattering the entire front end of our vehicle across the intersection. The other driver, in a surprising turn, tried to leave the scene without providing any information—a story for another day. But as I replayed the moments in my mind, I knew that if I hadn’t taken action early—or worse, if I hadn’t seen the truck at all—it would have hit the passenger side, right where Jen was sitting. The thought of what could have happened stayed with me, especially after our first child was born not long after.


With memories of that night still fresh, I couldn’t help but think about how differently things could have gone. If the truck had hit where my son’s car seat would now be, would the other driver’s insurance have been enough to cover a lifetime of specialized care in the event of a severe injury? Even with our $2M liability coverage, which could top up the difference from the other driver’s limits if they were found at fault, thanks to SEF 44 - Family Protection coverage on our auto insurance policy, I realized that amount might not be enough for the long-term needs of a child facing permanent injury.


That’s when I knew it was time to act. For just a couple of hundred dollars a year, I purchased an umbrella liability policy that now protects our family with up to $5M liability and $5M in family protection. The cost, compared to the peace of mind it offers, is invaluable. I know that, no matter what happens, our family has the coverage needed to face the unexpected.


Umbrella liability insurance isn’t just about protecting your assets; it’s about safeguarding your family’s future. Whether it’s for major accidents, unexpected lawsuits, or covering the gaps where standard policies fall short, the value it provides is unmatched. I encourage every family to consider this additional layer of protection—not just for peace of mind, but for the well-being of those you love most.


Have you considered adding umbrella liability coverage to your insurance plan? What’s your biggest concern when it comes to protecting your family? Share your thoughts below!

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