Umbrella - (Excess Liability)
Personal Umbrella Coverage.
The risk of being sued if you accidentally injure someone or damage their property becomes greater every year. We can help you determine whether this extra layer of liability protection (Umbrella) makes sense for you. Please read on to learn more or call us at 952-469-0414.
What is personal umbrella insurance?
Personal umbrella insurance provides coverage above and beyond your home or auto policy by adding an extra layer of liability coverage. Coverage is provided in amounts usually starting at $1,000,000. True Umbrella insurance contracts will also cover situations that may not be covered by another personal policy such as libel, slander, renting a boat, golf cart, or from suits relating to volunteer activities such as your leadership role in Boy Scouts or Girl Scouts etc.
Who should purchase personal umbrella coverage?
Historically, wealthy people with sizable assets have purchased personal umbrella coverage. This is no longer the case. Since our society has become more litigious, people of all income levels are choosing to extend their liability coverage. The greater your risk factors, the more you will should be motivated to protect yourself. Some high-risk factors include:
* Owning a personal watercraft
* Having a young driver in the family
* Owning a swimming pool
* Owning a recreational vehicle
How does it work?
Example: You have liability insurance on your auto policy for $500,000 and you also have additional liability protection of $1,000,000 through an umbrella.
On the way home from work, you run a red light and accidentally hit a pedestrian. The pedestrian is seriously injured and sues you for damages of $1,200,000. The court finds you liable for the full amount.
The liability on your auto policy pays the first $500,000. Once depleted, your umbrella policy pays the final $700,000.
If you had not been protected with the additional liability coverage, you personally would have been responsible for the other $700,000 in claims against you, likely forcing you into bankruptcy or forcing you to pay a percentage of your income to the injured party.
This is definitely the type of risk that you should transfer on to an insurance company.
"The Cost is small, but the benefit is Huge!
To learn more or purchase coverage call 952-469-0414 or contact us by email at bmeyer@millerhartwig.com
Commercial Umbrella (Excess Liability)
Commercial umbrella (excess liabilty) insurance is an important source of protection that supplements the limits of an insured's underlying policies such as general liability, automobile liability, and employers liability. Umbrella coverage also protect businesses and individuals from exclusions and gaps that exist in their primary liability coverge. Losses that are not normally covered in primary policies are subject to a self-insured retention (SIR or deductible), which is to be paid by the insured. SIR’s in the amount of $10,000 is most common. An umbrella policy's coverage is activated when the limits of the underlying insurance have been exhausted. A typical commercial umbrella liability policy offers features such as worldwide coverage; personal injury coverage; blanket contractual liability protection (for both written and oral agreements); care, custody, and control coverage; non-owned aircraft liability; watercraft liability; advertisers liability; liquor law liability; XCU liability; and an extension of protection to additional insureds. Underwriters and companies that issue umbrella coverage have a primary objective of dovetailing their excess program with the commercial general liability forms (both the claims-made and occurrence versions). They have a major stake in ensuring that their policies carry out their coverage intent without problems and uncertainties.
Following Form Policy
Umbrella liability insurance indemnifies the insured for loss in excess of the total applicable limits of liability stated in the schedule of underlying primary insurance policies. Most umbrella liability policy’s are typically a "following form," meaning that it tracks with the provisions of the underlying insurance. For losses that are not covered by underlying insurance, the umbrella policy generally does not apply. With respect to any occurrence not covered by underlying insurance, or damage that is not covered by underlying insurance but that results from an occurrence covered by underlying insurance, the umbrella policy indemnifies the insured for its ultimate net loss. The loss must exceed the insured's self-insured retention limit ($10,000) for example) and must involve damages that the insured is legally obligated to pay by reason of liability imposed by law or assumed by the insured under contract. Further, the damage must involve personal injury, property damage, or advertising injury (all as defined in the Definitions section of the policy) caused by an eligible occurrence.
Maintain Underlying Insurance
The umbrella liability policy has a critical requirement. It holds the insured accountable for maintaining the policies listed in the schedule of underlying insurance. They must be kept in force, without alteration of terms and conditions, during the term of the umbrella liability policy. The one notable exception is for the reduction or exhaustion of any underlying aggregate liability limits that is caused by response to an eligible loss
To learn more about umbrella's or purchase coverage contact us at 952-469-0414 or email bmeyer@millerhartwig.com