For example, what if…
- A babysitter is injured by your otherwise friendly dog?
- Your 14-year-old is online making negative comments to his friends about a teacher and posting them on a Web site. The teacher discovers the site and sues?
- While driving a rental car on business, you miss a red light and strike a car doing 50 mph? Your colleague is severely injured. Your company’s business auto policy does not apply to your colleague’s injuries because he is covered under worker’s compensation coverage.
- You have a small professional office in your home, and work out of that office, seeing clients on occasion - one of your elderly clients slips on some ice on your sidewalk, breaks a hip and later dies from complications?
- You have a candle burning in your bathroom. Your niece goes to wash her hands, her sleeve passes over the candle and is ignited. She suffers third-degree burns and you are held liable.
Be protected for the unexpected.
If you are found to be legally responsible for injuring someone or damaging their property without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. (Standard liability insurance generally includes homeowners, renters, auto and watercraft policies.)
How much coverage do you need?
Coverages start at $1 million and can go as high as $10 million. It is important to take into consideration both your total personal assets and your potential personal risks. For example:
- Do you operate a business in your home where employees and clients visit on a regular basis?
- Does your profession or the location of your home make you an easy target for a big settlement?
How much does a personal umbrella cost?
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets, your credit rating, and more, a $1 million umbrella policy typically costs about a dollar per day. Costs typically go up an additional $50 - $75 for each million thereafter.
The following claims scenarios are factual and highlight the real possibility of loss.
- Faulty Furnace: The insured’s tenant claims she became ill from carbon monoxide poisoning resulting from a faulty furnace. The tenant claimed permanent brain damage and demanded $750,000.
- Coaching Circumstances: A teenager, who was destined for greatness as a softball player, filed a $700,000 lawsuit against her former coach, alleging his “incorrect” teaching style ruined her chances for an athletic scholarship.
- Falling Concrete: A hillside on the insured’s property was covered with concrete to prevent erosion. The concrete had been installed before the insured purchased the property. Approximately 5 feet of the concrete fell to the neighboring property knocking the claimant’s home from its foundation. The resulting claim was settled for $970,000.
- Paintball Misfortune: The insured permitted several of her children and their friends to play paintball in her large backyard. The children were experienced and advised of all the safety rules including the use of headgear at all times. A participant removed her headgear as she was leaving the field in order to better hear someone calling her name. The minor claimant was hit in the eye resulting in a $475,000 settlement.
- Beach Explosion: The insureds hosted a beach party for their daughter. One of the attendees found what was believed to be an empty and discarded propane tank. The tank was thrown into a beach bonfire and subsequently exploded resulting in severe injuries to several guests. A $20,000,000 claim was filed alleging the insured failed to properly supervise the party.
Contact Marshall & Sterling to learn more about our affordable personal umbrella insurance and personal risk management solutions.