Personal Umbrella Policy: the underutilized risk management tool

If your client is driving in icy conditions and her car slides into a school bus, does she have enough coverage?

If your client is summoned to court on charges of slander, does he have any coverage at all?

As an independent agent, your clients depend on you to properly evaluate and recommend the appropriate solutions to address their insurance needs. Do you recommend a Personal Umbrella Policy as part of your total risk management solution for a new client or as part of an annual review with an existing client?

We see situations each year where the underlying auto and homeowners policies do not provide adequate limits or coverage.    

A Personal Umbrella Policy provides value in key areas that include:

• Additional liability limits beyond the underlying policies at an affordable price
• Drop-down coverage, addressing exposures that are not covered by the underlying policies
• The duty to defend for exposures covered by an umbrella
• Worldwide coverage 

Personal Injury Protection provided by an umbrella policy is a valuable drop-down coverage that extends beyond the definition of bodily injury in personal auto and homeowners policies. It includes: mental anguish, mental injury, false arrest, detention or imprisonment, wrongful entry or eviction, malicious prosecution or humiliation, libel, slander, defamation of character or invasion of privacy.   

Separate from any damages awarded, the financial consequences of having to pay to defend a libel or slander lawsuit can be a severe and longstanding setback for an individual or family. 

Incorporating a Personal Umbrella Policy into your clients’ risk management plan also adds value to your agency by:

• Building and enhancing your agency’s reputation as a trusted adviser
• Providing additional revenue
• Improving retention due to an increased number of products sold to a client
• Having established business practices to counter any errors and omissions claims related to not offering the umbrella as part of the total insurance solution

The addition of a Personal Umbrella Policy can also help your client receive a multi-policy discount on their Motorists Homeowners Policy. 

To learn more about our Personal Umbrella Policy, please contact your Personal Lines underwriter.

This article does not imply any actual coverage.