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If you were involved in an auto accident, found to be at fault, and permanently disabled 4 people in their mid 40’s, you would be responsible (liable) for the loss of potential earnings of these people for the rest of their working lives. That easily escalates to at least $1,000,000 per person. With the $1-2 million liability on your policy, you would personally be liable for at least another 2 million dollars. Umbrella policies let you sleep easy knowing that additional liability is looked after.