Umbrella insurance is “asset protection” or “lawsuit defence protection”, it gives the insured an extra layer of liability coverage on top of the built in primary liability coverage on their home and/or car insurance.
It is “worldwide” coverage, covering you and your family wherever you are in the world. It will cover everything that your homeowner and car policies will cover and other exposures including libel and slander.
In the event of a lawsuit, it will drop down when and if the primary liability is exhausted during the course of the suit. There are many examples of the umbrella coverage being accessed and savings current assets and any future payouts.
The JWA recommends that everybody have an umbrella policy, the amount will be determined by your net worth or an amount that will cover your major assets.