Solutions for your personal umbrella liability protection
Yes the liability coverage on your auto, homeowner and other personal liability policies will extend protection but will that limit be sufficient at the time of a loss? Unlike property losses where one can relatively anticipate the cost to replace or repair the damaged property, liability losses are impossible to predict as there are too many variables especially when it involves injury to people. How many persons were injured? Was a child injured? Did the injury result in a fatality? Did the injury result in a partial or total disability impacting the wage earning ability of the injured? What is the extent of medical treatment required?
Umbrella insurance is additional liability protection that is triggered when the limits provided by an auto, home or other underlying policy are exhausted. A schedule of primary underlying insurance is part of the umbrella contract, and such insurance must be kept in force during the term of the umbrella policy.
Although Umbrella terms of carriers can vary, the key objectives of all are to provide liability coverage for Personal Injury (libel, slander, defamation of character), Bodily Injury and Property Damage as well as defense costs. Due to the varying terms, it is important to understand your risks and customize your policy with a carrier that can provide the following extensions if needed:
- Coverage on a primary basis to claims not covered by underlying liability policies
- Worldwide liability
- Protection for libel and slander even when occurring through social media
- Protection for the acts of your domestic employees during the course of their employment
- Protection against allegations of wrongful employment acts brought by your residential employees or private staff
- Protection for wrongful acts arising from your duties as a board member of a not-for-profit entity
- Rented or chartered aircraft or watercraft
- Defense coverage outside of limits
- Defense coverage that continues even once the policy limit is exhausted
- Excess uninsured and underinsured motorist coverage