One way to protect your assets is to purchase a Personal Liability Umbrella Policy (PLUP). A PLUP provides added protection between your assets and a potential law suit. A PLUP provides coverage in addition to automobile and homeowner's liability insurance limits.

A PLUP pays up to the policy limit on claims that result in liability, and may provide defense cost for the insured. It generally will cover events such as bodily injuries, property damage caused by you or a member of your household, libel, slander, false arrest, and defamation of character.

A policy costs a few hundred dollars a year per million dollars of coverage. Consider adding an umbrella policy to your risk management planning.