As a physician, you have a relatively high net worth when compared to the general population. Are there times that an individual may see an opportunity for a big payout by taking advantage of your hard-earned financial standing?
Physicians can benefit greatly from an umbrella insurance policy. Let’s look at a few examples of how this insurance helps to add an additional canopy of protection for you.
The Value of Umbrella Insurance Illustrated
Perhaps you become involved in an automobile accident, and the authorities determine that the other driver’s injuries are your fault. Your auto insurance may cover the other driver up to the limit on your policy, say $250,000. But what will happen to you if that limit is not sufficient to cover the damages? Between property damage, medical bills, and lost wages, the damages caused in an accident can add up quickly.
Suppose the other driver's injuries are severe and you are held responsible for damages beyond the $250,000 that your auto insurance policy covers. If you are sued, your personal assets may be at stake.
Now, if that injured driver was a highly paid professional, what if the accident you caused kept him or her from working for six months? Suddenly, you are being sued for $1 million to cover six months of lost wages.
Suddenly, the benefits of your automobile policy at $250,000 seem very small indeed. Where will you come up with the remaining $750,000? Will you liquidate your assets? Empty your savings?
An umbrella insurance policy may help cover additional costs when your standard insurance policy isn't enough, so that you don't get stuck paying out of pocket for personal liability.
This may help protect your financial assets, home, other personal property (and your practice if you own one).
Texas Law, Damages, and You
In Texas, the law does limit punitive damages in auto accidents, but there are no restrictions for medical expenses, lost wages, or pain and suffering. It’s easy to see why even generous automobile insurance may not be enough to truly protect you. By carrying an umbrella liability policy, you can help protect against any catastrophic financial loss if you become the subject of a lawsuit.
How Umbrella Insurance Helps Homeowners
No doubt you carry an insurance policy to protect your property against fire, theft, or other loss. But if a visitor or worker is injured on your property, your homeowners insurance may not provide enough benefits to protect you ... and may leave your assets vulnerable to a lawsuit. Many homeowners policies provide only $100,000 of liability protection. If a person is injured on your property, will they see an opportunity for a large payout?
If you carry an umbrella policy, your liability coverage is extended, thereby helping to protect your assets; including your children’s college fund, your retirement savings, even your home itself.
Affordable, Simple Insurance Protection
In most cases, personal umbrella policies are available in million-dollar increments, from $1 to $5 million. While an umbrella policy is certainly not required, you may appreciate the additional coverage in the unfortunate event of an accident. And best of all, for the protection that is provided, umbrella insurance policies are very affordable; typically a few hundred dollars a year.
TMA Insurance Trust works with MyLifeProtected to offer umbrella policies from leading insurance companies including Travelers and Chubb.
In just a few minutes at MyLifeProtected you can go online to see what a policy will cost, or you can contact an agent who can develop a personal umbrella quote for you by calling 877-755-9576. Either way, TMA Insurance Trust has made it quick and easy to find out how to provide the coverage you need to protect what you have worked so hard to achieve!
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.