Umbrella insurance is an additional form of liability protection. The term “Umbrella” is used since it protects you from liability claims above and beyond your other policies – such as an auto or homeowners insurance. The insurance company would pay when damages exceed your other insurance limits if you are at fault in an accident and someone sues you for bodily injury, property damage, or lost wages. Without this coverage your personal assets are at risk in a lawsuit. Depending on your insurance company, umbrella insurance may add an additional 1 to 10 million dollars worth of coverage. It covers the cost of a legal defense, false arrest, slander, and provides you with personal liability coverage wherever you travel around the world. For so much additional protection you might be surprised to know that the cost is minimal to add umbrella insurance to an existing eligible policy. Keep in mind that it will not cover any business related claims, even if it is a home based business.