Let me start off by saying no one, and certainly no professional, should be without a personal umbrella insurance policy. Although it will not extend over your legal services or business coverage exposure (i.e., workers comp), the benefit of this coverage extending limits above your personal auto and homeowners coverages far outweighs the relatively minimal cost.
Life is full of uncertainties and unexpected events can disrupt even the most well-laid plans. In our ever-changing world, people are increasingly recognizing the importance of safeguarding their assets and future financial well-being. A powerful tool that provides additional protection is a personal umbrella policy. It offers a range of benefits that extend beyond the limits of standard insurance policies, providing individuals with peace of mind and additional financial security.
The primary function of a personal umbrella policy is to offer additional liability protection that goes beyond the limits of your auto, homeowners or other personal insurance policies. In the event of a major accident or unforeseen circumstance in which you are held responsible for damages, a personal umbrella policy kicks in to cover costs that exceed the limits of your primary policies. This can be particularly crucial in lawsuits, ensuring that your assets are protected. Below are just a few real-life scenarios in which insureds’ personal umbrella policy saved their personal assets and provided additional coverage and peace of mind.
Scenario #1: Automotive Liability
Incident: The insured was driving on a two-lane road when he struck a pedestrian walking home from work. The pedestrian suffered serious head trauma. The insured was not speeding, there was no alcohol involved and cell phone records show that no phone was in use at the time of this accident.
Outcome: RLI paid the $2 million personal umbrella policy limit after the insured’s underlying auto limit of $500,000 was exhausted.
Scenario #2: Impaired Driver
Incident: The insured was driving a vehicle when it was struck in the rear at high speed by an uninsured driver who was intoxicated. The insured was airlifted from the accident scene to a hospital. He sustained spinal injuries and other complications because of the accident.
Outcome: Because the RLI personal umbrella policy included coverage for excess uninsured/underinsured motorists with a policy limit of $1 million, the insured was paid the full $1 million for an accident that was not his fault. (A huge benefit in the RLI Insurance personal umbrella policy offered through OAMIC is that it can extend above your uninsured/underinsured motorist coverage. For example, a $500,000 personal auto limit with uninsured motorist limit also of $500,000, the $1 million personal umbrella will increase your uninsured motorist from $500,000 to $1 million. Most personal umbrella policies are unwilling to extend this benefit.)
Scenario #3: Boat Accident
Incident: The insured was operating a ski boat on a lake with two passengers. As the insured turned the boat, a strong gust of wind blew an inner tube out of the boat. A rope connected to the inner tube caught one of the passengers around the leg, launching him out of the boat and onto the dock. The passenger sustained substantial injuries to his knee and hip and was totally disabled for 6 weeks, leading to a business income loss.
Outcome: The primary insurance company tendered its full policy limit, which was $500,000 short of the total claim amount. The RLI personal umbrella policy covered the remaining amount. Without the personal umbrella policy, the insured would have had to pay the $500,000 out of pocket.
Easy Application, Quick Issuance
If you do not have a personal umbrella policy, we can now help you obtain one that I think is superior to most. It starts by completing the simple application. You will then have an immediate quote and the policy is immediately issued upon payment.
You can also learn more about the policy we can help you obtain on the Personal Umbrella Policy page or contact us if you have questions.
Author
Phil has been at OAMIC since 1989 and has served as president and CEO since 1993. He is past-president of the National Association of Bar Related Insurance Companies (NABRICO) and currently serves as secretary of the organization. He also serves as secretary of the Bar Plan Surety & Fidelity Company, is a board member of the National Association of Mutual Insurance Companies (NAMIC) and is a member of the Professional Liability Underwriting Society (PLUS). Phil has a Bachelor’s degree from Central State University (now University of Central Oklahoma) and is chair of the Edmond Economic Development Authority.