Why You Need Personal Umbrella Insurance

As the saying goes, accidents can happen.

With 30 years of experience managing personal liability insurance programs, I have seen firsthand that unfortunate incidents can happen to just about anyone – even attorneys. The problem is, even when you’re very careful in life, you can be named in a personal liability lawsuit.

You’re exposed every day to risks. No doubt you have insurance; but, many of your day-to-day exposures can lead to a lawsuit or claim well beyond the limits of coverage provided under your auto or homeowner’s policy.

Why you need Personal Umbrella Insurance

Our society is often characterized as litigious. In view of this, it’s a good time to consider the value of adding personal liability protection to your insurance portfolio.  Here’s why:

You or your teenage driver may be in an auto accident; someone could slip and fall in your home; there could be a mishap in your swimming pool or on your boat; your college student may be named in an incident while away at school; or you could be held responsible for a rental property or pet problem.


Generally speaking, a personal umbrella policy provides you (the insured), and your family with personal liability protection and the legal defense you may need in the event a covered incident or personal liability lawsuit. Without personal umbrella insurance, it’s a different story.  You and your entire family could end up in serious trouble. The financial damage, time drain and emotional stress can have severe impact on your career and your future earning abilities.


Suppose you’re in a car accident, for example: Your car insurance may only provide coverage with limits of $250,000 per person and $500,000 per accident. However, damages from the accident could be substantially higher than the primary auto limits.  You could be named responsible for bodily injury, future loss of income, pain and suffering, medication and more. You may also need the money and time to engage appropriate legal counsel. What’s more, you may need to take necessary action to prevent liens on your future earnings. 


When you weigh these possibilities against the cost of an annual premium of approximately $365, it’s not hard to realize the value of adding Personal Umbrella Insurance to your insurance portfolio.  The good news is you now have access to Personal Umbrella Insurance created exclusively for ABE members.


Introducing the ALIP Personal Umbrella Insurance Plan.

Offered to you at exclusive low member rates, the ALIP Personal Umbrella Plan provides you and your family from $1 million to $5 million in personal liability protection and the legal defense you may need in the event of a covered incident or personal liability lawsuit.


Some key advantages of the ALIP Personal Umbrella Insurance Plan:

  • A low single group rate provides coverage for your homes, autos and members of your household. Plus, it provides protection for accidents involving uninsured/underinsured motorists, identity theft and kidnap and ransom - at no extra cost.
  • You’ll have a team of experts on your side, ready to respond to complaint allegations or handle special claims such as liable and slander.
  • As you move through life cycles, your coverage goes with you.
  • Convenient “stand alone” feature allows you to purchase an umbrella plan independent from your auto and homeowners policy – which makes it easy to add this coverage anytime without changing an existing carrier.


My experience in personal liability insurance has enabled me to be well-versed in the exposures inherent in our everyday activities, as well as the practicalities of personal umbrella coverage for any lifestyle. I truly appreciate the emotional security and peace of mind that comes with having personal umbrella protection.


I recommend you consider the real value of obtaining ALIP Personal Umbrella Insurance created exclusively for ABE members.  It can prove to be a wise step toward protecting your finances – and obtaining peace of mind for your family’s future.


James Harding photo 



James R. Harding CPA, CLU, CPCU
Senior Vice President
Aon Insurance
199 Water Street - 9th Floor
New York, NY 10038
Phone - 1-800-453-4033

Fax - 1-800-701-1596 


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The examples above are illustrative and are not intended to establish any standards of care, serve as legal advice appropriate for any particular situations or provide an acknowledgement that any given situation is covered under any CNA insurance policy.  Only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions. The statements and opinions expressed above are those of the author and may not reflect those of any third parties including the CNA companies. CNA is a service mark registered with the United States Patent and Trademark Office.


The American Lawyers Insurance Plans, Inc. (ALIP) Personal Umbrella Insurance Plan for American Bar Endowment Members is administered and brokered by Aon Affinity, the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc.; (AR 244489); in CA, MN & OK, AIS Affinity Insurance Agency, Inc. (CA 0795465); in CA, Aon Affinity Insurance Services, Inc., (0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency and in NY and NH, AIS Affinity Insurance Agency.


Underwritten by a CNA Company. CNA is one of the largest underwriters in the U.S. and is rated A (Excellent) by A.M. Best & Co. The coverage is underwritten by one or more CNA companies. If coverage is written by a surplus lines insurer it may be subject to certain taxes and fees and is not subject to the protection of state guaranty funds.

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publication are those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. Any references to non-CNA Web sites are provided solely for convenience and CNA disclaims any responsibility with respect thereto. CNA is a service mark registered with the United States Patent and Trademark Office. Copyright © 2016 CNA. All rights reserved.