Umbrella Issues
Personal
&
Commercial
Tri-County AFO – April 2004
Introduction
Why?
How?
Personal or commercial or both?
What problems?
What opportunities?
WHY DO I NEED AN UMBRELLA?
Contractual Liability
WHY DO I NEED AN UMBRELLA?
Contractual Liability
Personal Injury automatically included *
WHY DO I NEED AN UMBRELLA?
Contractual Liability
Personal Injury automatically included *
Limited Care, Custody, and Control
WHY DO I NEED AN UMBRELLA?
Contractual Liability
Personal Injury automatically included *
Limited Care, Custody, and Control
Asset Protection
How
Personal Umbrella
Commercial Umbrella
Increase primary limits
Endorsements
Certificates
What
Access to catastrophe limits
Broader coverage
Contractual obligation
Financial protection
Residential
Wedding receptions
Golf outings
Family reunion
Ski trip
Swimming pool
Pets
Guns
Volunteering
Hobbies
Driving
Maintenance
Travel
Commercial
Landlord
Rental
Business activities
Employees
Contractors
Banking
Post Office
Luncheons
Consulting
Professional
Driving
Farming
Livestock
Grain
Harvesting
Hauling
Chemicals
Produce
Recreational
Residential
Hobbies
Travel
Hunting
Cyber-liability
E-Mail
Trademark Infringement
Banking
Advertising
Publishing
Testing
Consulting
Records Management
Virus, denial of service
Valuable papers and records
Eligible occupancies
building owners
churches
families
condominiums
retail, wholesale
farms
Case One
Your son and his future wife are planning
a rehearsal dinner – you’ve booked the
grand café
They ask for evidence that you have
insurance
The contract you sign says you’ll be
responsible for all damages
Case Two
The holidays are approaching – time for the
office party
The walls are decorated with your holiday good
wishes.
Taking down the decorations, you find the walls
have been damaged.
In addition, one of your guests has driven a golf
cart into the water hazard on #19
Typical Underlying Policies
Auto
Homeowner
Boat
Recreational Vehicle
Farming or Other Business Liability
Employer’s Liability
Professional Liability
Key Questions
Identify who you’re insuring
Identify owned and rented property
Identify insurance coverage and limits
Identify gaps and unique exposures
Coverage
Bodily injury
Personal Injury
Advertising Injury
Property Damage
Limited exclusions *
Broader Definitions *
EXCLUSIONS
Workers
Compensation &
employment practices
EXCLUSIONS
Workers
Compensation &
employment practices
*
Intentional Acts
EXCLUSIONS
Workers
Compensation &
employment practices
Intentional Acts
Section I/First Party
EXCLUSIONS
Workers
Compensation &
employment practices
Intentional Acts
Section I/First Party
Aircraft
EXCLUSIONS
Workers
Compensation &
employment practices
Intentional Acts
Section I/First Party
Aircraft
Professional
EXCLUSIONS
Workers Compensation &
employment practices
Intentional Acts
Section I/First Party
Aircraft
Professional *
Business/Business
Property
EXCLUSIONS
Workers Compensation &
employment practices
Intentional Acts
Section I/First Party
Aircraft
Professional
Business/Business
Property
Auto/ENOL
EXCLUSIONS
Workers Compensation & D&O
employment practices
Intentional Acts
Section I/First Party
Aircraft
Professional
Business/Business
Property
EXCLUSIONS
Workers Compensation & D&O
employment practices
Pollution
Intentional Acts
Section I/First Party
Aircraft
Professional
Business/Business
Property
EXCLUSIONS
Workers Compensation & D&O
employment practices
Pollution
Intentional Acts
Section I/First Party
Household
Aircraft
Professional
Business/Business
Property
EXCLUSIONS
Workers Compensation & D&O
employment practices
Pollution
Intentional Acts
Section I/First Party
Household
Aircraft Illegal Discrimination
Professional
Business/Business
Property
Coverage - Auto Exposures
Personal legal liability for our individual
insured can arise from personal or
business use of owned, non-owned,
and leased vehicles.
How is the car owned?
How is it used?
What about partnerships or
corporations?
What about non-owned
cars?
Extended Use of Non-owned autos?
Named Non-Owner?
99 10? 99 17?
When does underwriting call for these?
Challenges
What about
“Maintenance of
Underlying”?
Renewal
underwriting
Condominiums