Umbrella Insurance and LLC?

[Trevor Shakiba]

If you own your properties within a LLC is it prudent to also have umbrella insurance for each individual property? I've found obtaining umbrella insurance as a business (LLC) to be cumbersome and was wondering if the LLC provided enough protection by itself.

Thanks!

[Tim Norris]

It is really not an issue of either/or, as an umbrella (or liability coverage "in general") and an LLC are/could be created for different reasons. Think of the LLC and other work you may do with legal and financial advisers (such as attorneys and accountants) as your "castle walls and moat" around your assets, personal and otherwise. Think of the insurance you secure as an "archer in the watchtower". In other words, the walls and moat should be your foundation as it pertains to protecting you/your assets. The archer (insurance) won't pick off every bad guy that tries to get in, so having the walls and moat is vital. Think of them working together not in lieu of each other. Hopefully this helps!