What does a Personal Umbrella Policy typically supplement?

A Personal Umbrella Policy is designed to provide additional liability coverage beyond the limits of other primary insurance policies, particularly home and auto insurance. This type of policy extends protection in cases where the liability limits of these primary policies have been exhausted. For instance, if a liability claim resulting from a car accident or a slip-and-fall incident exceeds the coverage limits of an auto or homeowner's policy, the umbrella policy will cover the additional costs, up to its own limits.

This supplemental nature of the Personal Umbrella Policy is particularly important because unexpected events can generate substantial liability claims, and having higher coverage limits helps protect individuals from financial ruin in such situations. By providing an extra layer of security, it ensures that policyholders are better safeguarded against significant lawsuits or claims.

Regarding the other options, while health insurance, workers' compensation, and auto insurance are all important types of coverage, they do not align with the primary function of a Personal Umbrella Policy, which is specifically to supplement existing liability coverage.