Protect Your Legacy With An Umbrella, real world examples of excess liability claims

By: Advocate Brokerage

A Personal Umbrella Policy, also known as Excess Liability Insurance, is something that every successful individual should consider adding to their insurance portfolio. It provides coverage over and above the limits offered by your homeowners, renters, automobile, or watercraft policies providing an extra layer of protection should you get sued.

An excess liability policy offers protection against claims including bodily and personal injury, libel, slander, and defamation of character. Additional options that can be added to some umbrella policies include uninsured/underinsured motorist coverage, employment practices liability coverage (EPLI), directors & officers liability (D&O) insurance for those that serve on not-for-profit boards. Coverage is subject to the terms of the actual policy.

Some people may contemplate forgoing an Umbrella policy because they believe they aren’t really facing any significant risks. We thought it might be helpful to share some real-world claim examples so that you can gain some insight to the type of protection an excess liability policy can provide.

Real-World Examples Of Excess Liability Claims

from our friends at Chubb

Claim Settled For $1.8 Million

While performing maintenance on a large water tank at a client’s home, a service provider fell off a ladder that the client had provided, injuring his legs and back. He was released from the hospital a week later, following surgery. His pain continued for a few years, resulting in a later diagnosis of Complex Regional Pain Syndrome (CRPS), which is a chronic pain condition where the pain is typically out of proportion to the severity of the initial injury. The plaintiff claimed damages against the homeowner for negligence in supplying the ladder. The client had coverage under a Chubb primary homeowner’s and excess liability policy.

$3.28 Million Paid To Cover Medical Expenses, Long Term Care and Pain & Suffering

Two teenagers were driving in an ATV when they lost control and the vehicle flipped, crushing the passenger’s hand. Over the course of several years, the passenger had many surgeries, and ultimately underwent an amputation of his hand. The teen driver was covered as a dependent under the client’s excess liability policy.

$210,000 Claim Settled

A client asked that his housekeeping staff continue to work during the COVI D-19 statewide mandate that non-essential workers stay at home. Due to performance issues, one of the employees was let go. The employee sued the client for wrongful termination and retaliation, alleging that he had been fired for complaining that the insureds were in breach of statewide stay-at-home orders. The claim was assigned to Chubb’s dedicated employment practices group for handling, and skilled employment counsel was retained for the defense.

Counsel quickly began negotiating the claim with the claimant employee and reached an agreed settlement of the matter prior to a trial.

Final Thoughts from Advocate Brokerage

The more you have acquired in life, the more you need to think about protecting both your financial security, as well as your family’s legacy. The unfortunate fact is that the more you have, the more people will look at you as someone who has something valuable to take. It makes sense to protect your assets. Excess liability coverage is usually sold in increments of $1 million. We work with elite carriers that specialize in high-net-worth insurance and offer coverage up to $100 million.

An Umbrella policy is one of the most important components of a successful individual’s personal risk portfolio. We like to refer to it as your Sleep Better At Night policy because it will go the extra mile to safeguard your legacy! If you have any questions, please get in touch with us!

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