When we think of risk-takers, we conjure up images of tight-rope walkers, skydivers or gamblers willing to stake everything they have on a hand. We don’t think of the average homeowner, parent or community member.

Nowadays, the average person is leading a far riskier life than you’d think—that is, it is likely most people are not adequately protecting their assets. Excess Liability Insurance helps protect what you have spent a lifetime building when an unexpected occurrence turns into a liability judgment against you. Suddenly, your exposure can threaten the security of your prized possessions and hard-earned lifestyle.

Excess liability insurance is a critical, but often overlooked, component of your personal risk management portfolio. We have worked in conjunction with our partners at Chubb Insurance to provide you with some thoughtful questions that may have you re-evaluating how you’ve been protecting your financial assets.

How can excess liability insurance help protect you? We live in an increasingly litigious society and legal disputes are more prevalent today than ever. Costs of new liabilities and exorbitant jury verdicts can run in the millions. Even minor damages, such as a fender bender, can end up being costly over time if a dispute necessitates legal fees.

Often called an umbrella policy, excess liability insurance offers higher limits you may need to cover damages for which you or someone in your household may be legally responsible. When the amount you must pay for a covered loss exceeds the limits of liability under your other individual insurance policies, an excess liability policy is triggered to provide much higher limits.

How much excess liability insurance do you need? Your personal financial situation will determine the correct amount of excess liability insurance for your family. Lawsuits may evolve into much more costly disputes than originally anticipated or your assets could be targeted if you do not have adequate liability coverage for legal damages. To determine an appropriate limit, work with your agent or broker to review all of your assets such as your house, other properties, vehicles, personal belongings and valuable collections, 401(k) investments and college funds for your children.

Be mindful of your risk factors such as the length of your work commute, the number of residences owned, domestic employees, vehicles and watercraft owned and the online activities of household family members. In other words, consider the unforeseen.

In most states, there is no cap on legal expenses incurred for a covered loss, as such expenses are outside of the liability limit.

Did you know catastrophic financial loss could occur in seconds? The more you have acquired, the higher your risk for litigious encounters. Your financial security could become severely compromised due to accidental events you may have thought were adequately covered. Excess liability insurance responds when the underlying liability limits of your various other policies have been exhausted.

Establish peace of mind and protect your financial security. Contact Penny Insurance today to evaluate your existing policy or build a new program that is right for you. Your protection is our priority.