This is an insurance contract designed to accomplish two goals. First, it increases liability protection beyond what you have in your homeowners and automobile insurance policies. Second, it aims to fill in gaps in your liability coverage since some things are simply not covered by automobile and homeowners policies - for example, libel and slander. Together with homeowners and automobile insurance policies, a personal umbrella policy gives you the highest level of protection.

No. Some policies cover only disabilities arising from an accidental injury, providing no coverage for disabilities caused by sickness. A careful reading of the contract is recommended to determine the extent of coverage provided under the disability insurance policy that you are considering purchasing. Sound risk management suggests the purchase of a policy that covers disabilities arising from either an accident or an illness.