My husband and I are both physicians. We have recently had kids. We have recently increased our life insurance. We are thinking of obtaining umbrella insurance, although we have CRICO coverage through our hospitals (1/5 million I believe). We are trying to decide between 1 million and 2 million in umbrella insurance coverage, in case of liability that exceeds hospital insurance coverages. Our assets are less than 1 million. However, we've heard of garnishing of wages and am trying to decide between 1 and 2 million. What are some common things to consider in deciding an overall amt of coverage?

Zip Code: 02114

I also have a similar question. A brochure I read recently about umbrella insurance claims that it would NOT cover professional/malpractice liability but only personal liability (i.e. auto accident liability, etc.). Is this generally true?

Zip Code: 02492

These are definitely questions for your insurance person. The company where you purchase your malpractice insurance should be able to guide you with respect to purchasing umbrella insurance.

If you have a relationship with an attorney who specializes in asset protection, he or she might be able to help you out with this question.

I'll reach out to some of my colleagues in the insurance industry to try to get you an answer to these 2 questions.

Zip Code: 73104

You should purchase the higher amount (if not more) based on your income potential as well as assets that you are going to accumulate over time. This coverage is very inexpensive and the cost for $2,000,000 won't be much more than the cost for $1,000,000 as the cost per $1,000,000 is not proportionate.

If you are interested, and send me an email, I will send you a detailed outline from a talk that I did with Jay Adkisson, Esq , a well-known asset protection attorney, for the American Society of Plastic Surgeons at their annual meeting called "Asset Protection: Avoiding the Landmines" along with an article by Daniel Rubin, Esq on the "The Ten Biggest Mistakes Physicians Make In Asset Protection". I think you will find them very informative.

Finally, you might want to read this article to better help you understand the significance of umbrella coverage http://www.forbes.com/forbes/2005/0606/146.html

You have heard correctly that an umbrella policy will not protect you against your own malpractice (BTW, the same is true for corporations).

Hope this helps.

Larry

Zip Code: 11797