8 - 1copyright 2008, the national underwriter company personal umbrella coverage what is it?...
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8 - 1Copyright 2008, The National Underwriter Company
Personal Umbrella Coverage
What is it? Provides worldwide coverage over and above that
provided by the underlying policies Excess liability coverage
On top of coverage already in place
Dropdown liability coverage Provides broader than that in the underlying policies
Chapter 8Risk Management For Financial Planners
8 - 2Copyright 2008, The National Underwriter Company
What do umbrellas have in common? Duty to defend Insured will maintain underlying limits of insurance
Varies from insurer to insurer
Deductibles Called the retained limit Part of the loss the insured is expected to assume
Policy responds to suit for damages alleging bodily injury or property damage arising out of a covered occurrence
Chapter 8Risk Management For Financial Planners
Personal Umbrella Coverage
8 - 3Copyright 2008, The National Underwriter Company
What do umbrellas have in common? (cont'd) Provide coverage for claims arising out of personal injury
False arrest Libel Detention Malicious prosecution Imprisonment Wrongful eviction,
wrongful entry
Bodily injury, property damage must result from an accident
Definition of insured Named insured and spouse (if residents of the same household) resident relatives
Chapter 8Risk Management For Financial Planners
Personal Umbrella Coverage
8 - 4Copyright 2008, The National Underwriter Company
What don’t umbrellas have in common? Umbrella policy may actually be an excess liability
coverage policy Provides coverage over that of the underlying policy It does not provide coverage for any liability not already
covered in the underlying policy True umbrella provides coverage where the underlying
form might not Some umbrellas cover auto accidents anywhere in the
world Auto policy only applies to accidents in the United States
Some umbrellas cover limited business exposures A few provide coverage for rented aircraft (with a crew)
Chapter 8Risk Management For Financial Planners
Personal Umbrella Coverage
8 - 5Copyright 2008, The National Underwriter Company
Underwriting and umbrellas Strictly underwritten
Might not cover drivers with moving violations Strict criteria is the rule
Chapter 8Risk Management For Financial Planners
Personal Umbrella Coverage