On February 12, 2009, the Chicago Daily Law Bulletin and the Chicago newspapers reported the story of a settlement in the amount of $2,500,000 reached by an insurance company for an Illinois couple and a then-19-year old man who was paralyzed in an auto accident after the driver had been drinking in the couple’s home with the couple’s underage daughters while the wife was present. The driver alleged the wife was negligent in failing to supervise the activities in the home. The settlement was in the amount of the couple’s homeowners insurance policy.
Fortunately for the couple they had sufficient insurance coverage. Most homeowners insurance policies protect against accidental bodily injury with policy limits in the range of $100,000. Additional protection can be obtained through umbrella liability policies. The annual premium for a $2,000,000 policy quoted to this writer was $360 per year, which is less than the cost of a visit to your attorney’s office. Why risk loss of substantial wealth as a result of . . . an accident? Umbrella liability insurance remains one of the most inexpensive and best asset protection strategies available.