Umbrella insurance is probably the least expensive insurance any doctor will buy, but the payoff can be massive. Physicians need an umbrella policy and they should be viewed as added protection. Most wise physicians will carry an umbrella policy of $1 to $5 million. The more you’re covered, the cheaper each unit of insurance becomes. For physicians, in particular, there are several reasons to carry an umbrella policy in addition to your other insurance policies.
Malpractice Insurance May Not Cover Everything
Even when you have malpractice insurance, the maximum coverage can still fall short. The reason being is some medical claim payments are astronomical. The mean indemnity payment is $274,887. Considering that by age 65, 75% of physicians in low-risk specialties face a malpractice claim having extra coverage is more than wise. The percentage rises to 99% for doctors in high-risk specialties.
Other Insurance Lines are Limited
Many overestimate the protection that staples like homeowners and automobile insurance provide. These policies get the job done when it comes to covering damaged property but often fall short in the arena of liability exposure. An umbrella policy is designed to broaden the spectrum of your current insurance policies, and protect you in the event that your current policies reach their limits.
Umbrella Policy Features
- Available in increments of $1 million
- Extend coverage of existing policies
- Affordable premiums of $150-$300 per year
Umbrella Policies Cover Bodily Injury
Aside from malpractice, the costliest legal fees result from auto accidents. The Insurance Institute for Highway Safety calculated nearly 39,000 fatal vehicle accidents in 2019. The best auto policy has limits, and in the event of a serious accident, it will only cover a fraction of the medical bills and legal fees. Are you fully protected for the high risk that comes with daily driving? Most people aren’t. An umbrella policy makes sure accidents on the road, or on your property are covered.
Your Life is More than Your Car and Home
The US is one of the most sue-happy countries in the world. Thousands of new lawsuits get filed every day. Umbrella insurance covers the things that can go wrong that have nothing to do with your home or auto.
- A guest slips on your property and is injured
- Your dog bites someone
- Your child destroys property
- You home burns and damages surrounding homes
More Protection Can Save You Money
Aside from saving you money in the event of needing coverage, many insurers offer valuable discounts on the cost of extra coverage. You should also explore the option of “endorsement” or “add-on coverage” to existing policies. These options can increase your total coverage into the millions.
An agent can help guide you through the cost analysis of different packages that make sense for you.
