{"id":5673,"date":"2025-01-17T10:29:09","date_gmt":"2025-01-17T15:29:09","guid":{"rendered":"https:\/\/www.lindabury.com\/firm\/?p=5673"},"modified":"2025-01-17T10:29:09","modified_gmt":"2025-01-17T15:29:09","slug":"umbrella-liability-insurance","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/umbrella-liability-insurance.html","title":{"rendered":"Umbrella Liability Insurance"},"content":{"rendered":"

Clients often ask about ways to protect their assets and limit liability in the event of future creditors. Transferring assets to trusts, limited liability companies, or into the names of others (for example, a spouse or child) may work in some instances but all have their drawbacks. Some states allow a grantor to create a self-settled asset protection trust, which safeguards assets from creditors and keeps the assets available to the grantor. However, New Jersey law does not allow such trusts. Limited liability companies provide protection for legitimate business or income-producing endeavors, such as a rental property, but not for personal assets. And spouses may be liable for their partner\u2019s debts in certain circumstances. What, then, can be done?<\/p>\n

One option to consider is purchasing umbrella liability insurance. An umbrella policy provides additional coverage beyond the limits of homeowners or auto insurance policies. An umbrella policy typically covers the following:<\/p>\n