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Carriers - The Right Insurance for Your Needs

What is Umbrella Coverage

Protect yourself from liability lawsuits that could substantially deplete your net worth and future income with the superior coverage provided by our Umbrella policy, an essential component of the ACE Platinum Portfolio program.

The threat from liability lawsuits is real

The more you have, the more attractive you are as a target for a liability lawsuit.

Lawsuits are very expensive. Personal liability awards and settlements can reach into the tens of millions of dollars, far exceeding limits in basic Home and Auto policies and perhaps even your current Umbrella coverage.

From 2000 to 2006, the highest personal injury award was $326 million, 13 percent of all personal injury claims exceeded $1 million, and 4 percent exceeded $5 million. Here are just a few of the cases that lead to large awards or settlements over the 2000 to 2006 time period:

$8.0 million: Male plaintiff suffered an aggravated vertebra injury requiring fusion surgery as a result of a fall from a porch at a residence owned by the male defendant.

$4.6 million: A two-year-old child suffered anoxic brain damage, which resulted in diminished mental capacity, total blindness, and spastic quadriplegia when he wandered into a swimming pool after squeezing between the boards of a surrounding fence at the defendant’s home.

$9.5 million: A 14-month-old child became permanently paralyzed as a result of an auto accident when the defendant’s vehicle stalled in the middle of the roadway.

Fortunately, such occurrences are rare, but an affluent lifestyle can put you at a higher risk. Swimming pools, trampolines, and tennis courts at your homes increase the chance of injury and death. Domestic staff can sue you for harassment or wrongful termination. If you serve as a volunteer board member of a non-profit organization, you could be held personally liable for the actions of the organization.

How our Umbrella coverage protects you

Our Umbrella policy provides additional liability coverage once the liability limits in your Home and Auto policies are exhausted. A host of options designed specifically for affluent lifestyles is also available.

Up to $100 million in excess liability coverage for bodily injury, personal injury, and property damage

Legal defense costs, which can run into the hundreds of thousands of dollars, are covered in addition to the liability limit.

Up to $25,000 for the cost of having your private counsel shadow our defense efforts, with options up to $250,000

Up to $25,000 for the cost of hiring a public relations firm to protect your reputation, with options up to $250,000

Worldwide coverage. Some aspects of Home and Auto coverage may not extend throughout the world; our Umbrella coverage would fill the gap and provide coverage from the first dollar of loss. For instance, liability coverage for rented or borrowed vehicles is provided while traveling abroad.

Optional Uninsured/Underinsured liability coverage, with limits from $1 million up to $10 million, protects families if they suffer bodily injury or property loss at the hands of someone who has no or insufficient insurance. This endorsement is unusually broad because it is not limited to automobile accidents. It applies to other accidents as well, such as swimming pool mishaps on a neighbor’s property.

How much Umbrella coverage do you need?

Jury awards and settlements for personal liability lawsuits can put all of your assets as well as future income at risk. To be fully protected, you should consider the following:

  • Equity in your real estate holdings
  • Value of your personal possessions
  • Savings and investments, including retirement accounts
  • Future income stream from your employment

Developing an overall estimate can be a complex process. Your financial advisor should be able to help you develop an overall estimate considering the elements listed above. Your insurance agent or broker should then be able to discuss your tolerance for risk and how much Umbrella coverage would be warranted.

Learn more about Family Security Coverage by calling The Insurance Loft at 800-409-9790 or email us at: