Alternative 1 - Set Up an LLC
Another way is to set up your business as an LLC if you’re currently operating as a sole proprietor. That way, if someone suffers harm because of your business, they can only go after property held by the business instead of your personal holdings.
Alternative 2 - Increase Current Policy's Coverage
You can also increase the liability coverage on your renters, homeowners and auto policies to avoid buying umbrella insurance. However, it’s usually cheaper to buy a new umbrella policy than to increase the liability payouts on your other forms of insurance.
Alternative 3 - Study Your State Laws
Research your state’s homestead laws, which can protect your property from being named in a judgment. These usually only apply to your primary residence and not a vacation home. You also must live in a state for a minimum length of time to qualify as a resident.
Alternative 4 - Self Insure
A more unorthodox method is to self-insure with a large stockpile of assets, usually several million dollars. But this route is only attainable for a small subset of the population.