When it comes to ensuring full protection, the standard limits aren't always enough.
With significant assets comes substantial liability exposure, especially in today’s litigious society. If you own multiple homes, cars and watercraft, employ domestic staff, sit on nonprofit boards or have other unique lifestyle characteristics, you may be at risk.
The liability coverage included in your personal homeowners, auto and recreational vehicle policies is considered primary insurance and applies first in the event of a claim, but often that coverage isn’t enough.
Coverage Beyond Standard Limits
Excess liability, or umbrella coverage, provides protection after primary coverage limits are exhausted. If you face a claim without enough insurance, your personal assets are exposed. One personal liability lawsuit can potentially leave you responsible for settlement costs and exorbitant legal fees regardless of the outcome.
Personal liability protection is an important part of financial planning — especially if you have significant assets to protect. As a leading high-net worth personal lines insurance brokerage, we’ve developed a group excess liability program to provide exceptional coverage that costs significantly less than an independent policy.
An excess liability policy – also known as an umbrella policy – supplements your basic personal liability coverage provided under homeowners and auto policies to better protect you from large losses.
Excess uninsured/underinsured liability coverage offers protection when and where present programs fail to meet your individual needs. If you or a member of your family becomes involved in an accident in which someone else is responsible, this coverage reimburses you for damages.
Covered damages include:
- Loss of income
- Future earnings
- Short-term and long-term medical expenses
- Pain and suffering
- Your risk tolerance
- Identifying the risks you are subject to, the probability that those risks will occur and the potential magnitude of loss associated with the risks
- Your financial situation and the impact the loss would have on your financial position
- The extent to which underlying insurance policies would respond to the identified risks
- How much premium you’re willing to pay to mitigate your exposure to the identified risks
Finding the Right Limit for You
In the realm of personal property and casualty insurance, excess liability has the lowest ratio of premium to maximum claim payout and your defense costs are not subject to the policy limit.
Excess liability limits are a judgment call and setting the right limit for you will depend on many factors, including:
Ensure Your Family Is Protected
Your policy covers the person named in your certificate along with that person’s spouse or domestic partner, any relative by blood, marriage or adoption who is a resident of the same household, and any person under age 25 in the care of a covered person — as long as your children claim your household as their primary residence when they’re not at college, they’re covered.
Adding excess liability coverage to a primary policy is not a one-size-fits-all situation, and failure to match the excess and the primary or underlying policy can have significant coverage ramifications, including possibly leaving the client personally exposed for any uninsured gap.
Our liability experts have the experience to put the best plan in place that'll help protect your well-being.