Sometimes things go wrong – a car accident, a guest slips and falls on your property, a lawsuit. If you don’t have the right coverage, an unfortunate situation can compromise your financial security. Show
Personal excess liability insurance can help protect you, your family, and your hard-earned assets. This type of coverage responds when the underlying limits of your other insurance policies, such as home, auto and watercraft, aren’t enough to cover the cost of an unexpected lawsuit or accident. Personal excess liability insurance may also provide payments for when others don’t have enough coverage. For example, it can provide protection if you select optional excess uninsured motorist coverage and are involved in an accident with an uninsured or underinsured driver. Personal Excess Liability Insurance HighlightsHigh Liability Limits You'll benefit from some of the broadest umbrella liability limits available, ranging from $1 million to $100 million. Worldwide Coverage We cover our clients wherever life takes them – whether that's at home or abroad. Protection in the Courtroom We include defense costs for a lawsuit, even if it is groundless, false, or fraudulent. And we’ll also provide legal counsel and coverage for all expenses. Maintain Your Reputation Protection from lawsuits involving accusations of libel, slander, or negligent injuries—including cases originating from social networks, websites or blogs. Drive With Confidence Additional protection if you are involved in an accident with an uninsured or underinsured driver. Protection at Home Protection if you are liable for someone getting injured on your property. For example, if someone falls on your sidewalk, slips near your pool, or is injured by your pet. Disclaimer: This information is descriptive only. All products may not be available in all jurisdictions. Coverage is subject to the language of the policies as issued. What Is an Umbrella Insurance Policy?An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured's homeowners, auto, or watercraft insurance. It provides an additional layer of security to those who are at risk of being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy. Key Takeaways
What Is Umbrella Insurance?How an Umbrella Insurance Policy WorksThe added coverage provided by an umbrella insurance policy is most useful to high net worth individuals who own a lot of assets—or very expensive assets—and are at a significant risk of being sued. Small businesses also use an umbrella insurance policy to guard against potential monetary damages arising due to claims. The premium for an umbrella insurance policy may be less expensive if the policy is purchased from the same insurer that provided the original auto, home, or watercraft insurance. Depending on the provider, the policyholder who wants to add an umbrella insurance policy is required to have a base insurance coverage of $150,000 to $250,000 for auto insurance and $250,000 to $300,000 for homeowners insurance. Umbrella insurance is often referred to as excess liability insurance. If a policyholder is sued for damages that exceed the liability limits of car insurance, homeowners insurance, or other coverage types, an umbrella policy helps pay what they owe. In other words, if the dollar limit of the original policy has been exhausted, the umbrella policy acts as a fail-safe, so the insured person doesn't have to dip into savings and other assets. Umbrella insurance may also provide coverage not included in a basic insurance policy, such as libel, slander, and false imprisonment. Special ConsiderationsPeople who regularly purchase umbrella insurance will usually own expensive property or have significant savings. Or they may own dangerous things that can cause injury (swimming pools, trampolines, dogs, etc.). They might also engage in activities that increase their chances of lawsuits, such as:
$150 to $300The annual cost of $1 million personal umbrella insurance policy, according to the Insurance Information Institute Example of an Umbrella Insurance PolicyTo understand how umbrella insurance can help, consider the following scenario. If a driver runs a red light and accidentally hits another car, there might be significant damage to the vehicle and several people might be injured. With car repairs totaling $50,000 and the treatment of the injuries eclipsing $500,000, the driver at fault may be liable for expenses that go far beyond the coverage limits of their insurance. An umbrella insurance policy will pick up the additional liability costs beyond the limits of car insurance coverage. What type of coverage do umbrella policies provide?Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.
What is the purpose of an umbrella insurance policy quizlet?The umbrella policy would cover claims that exceed the limits of the underlying policies as if they had been kept in force, subject to a self-insured retention. C. The umbrella policy would cover claims that exceed the limits of the underlying policies as if they had been kept in force.
What type of coverage do umbrella policies provide quizlet?umbrella policies can provide excess protection over personal liability coverage, automobile liability coverage, and many other types of liability programs. there is usually a minimum limit of liability the insured must carry and maintain on the basic policies, such as $300,000 on personal liability risks.
How much does an umbrella policy cover quizlet?Usually coverage ranges from $1 million to $10 million and covers liability loss exposures arising out of the home, cars, boats, recreational vehicles, sports, and other personal activities.
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