Umbrella (Excess Liability) Coverage

Assets and wealth bring public recognition - and a variety of liability exposures that must be addressed.

Typically, people with assets host parties, travel frequently, and usually serve on boards of non-profit organizations. They are more exposed than the average person to liability claims arising out of personal activities and they have a lot more to lose.

The maximum limits for personal or automobile liability policies is $500,000 to $1,000,000 for injuries caused by you or members of your household. In today's litigious society, this may not be enough. If your coverage limits aren't high enough, your assets might be sold or your income garnished until your debt is paid.

You can buy extra insurance in the form of an umbrella policy that covers over and above your automobile and homeowners policies. Umbrella coverage is relatively inexpensive because it doesn't come into play until the other policy limits are reached.

Coverage is written in increments of one million dollars, with the amount chosen based on your assets - what you would stand to lose in the event of a high judgement against you. Although umbrellas provide broad coverage that is worldwide, they usually exclude business exposures. Claims arising out of sexual harassment and discrimination, as well as assault and battery, are usually excluded as either intentional acts or damages resulting in other than bodily injury.

Most umbrella policies automatically include the insured, family members of their household, and in certain instances, household help. Different companies have different definitions of insured, so we advise you to discuss this with your MSG Personal Lines Agency representative.

Umbrella policies cover exposures such as personal injury, including libel, slander, and malicious prosecution, that some standard property policies don't. Unless an exposure is specifically excluded from the umbrella policy, it's covered. Recreational vehicles such as snowmobiles and golf carts are usually covered, but may be subject to underlying liability requirements.

Often there is some coverage for personal and bodily injury for volunteers who work for or are on the boards of non-profit and charitable organizations. In some cases, there is also some very limited directors' and officers' liability, but this varies by carrier.