Umbrella Issues Personal

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Umbrella Issues Personal Commercial
Tri-County AFO April 2004
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Introduction

• Why?
• How?
• Personal or commercial or both?
• What problems?
• What opportunities?

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WHY DO I NEED AN UMBRELLA?

• Contractual Liability

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WHY DO I NEED AN UMBRELLA?

• Contractual Liability
• Personal Injury automatically included

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WHY DO I NEED AN UMBRELLA?

• Contractual Liability
• Personal Injury automatically included
• Limited Care, Custody, and Control

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WHY DO I NEED AN UMBRELLA?

• Contractual Liability
• Personal Injury automatically included
• Limited Care, Custody, and Control
• Asset Protection

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How

• Personal Umbrella
• Commercial Umbrella
• Increase primary limits
• Endorsements
• Certificates

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What
Access to catastrophe limits Broader
coverage Contractual obligation Financial
protection
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Residential
Wedding receptions Golf outings Family
reunion Ski trip Swimming pool Pets Guns Volunteer
ing Hobbies Driving Maintenance Travel
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Commercial
Landlord Rental Business activities Employees Cont
ractors Banking Post Office Luncheons Consulting P
rofessional Driving
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Farming
Livestock Grain Harvesting Hauling Chemicals Produ
ce Recreational Residential Hobbies Travel Hunting

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Cyber-liability

E-Mail Trademark Infringement Banking Advertising
Publishing Testing Consulting Records
Management Virus, denial of service Valuable
papers and records
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Eligible occupancies
building owners
churches
families
condominiums
retail, wholesale
farms
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Case One

• Your son and his future wife are planning a
  rehearsal dinner youve booked the grand café
• They ask for evidence that you have insurance
• The contract you sign says youll be responsible
  for all damages

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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

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Typical Underlying Policies

• Auto
• Homeowner
• Boat
• Recreational Vehicle
• Farming or Other Business Liability
• Employers Liability
• Professional Liability

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Key Questions

• Identify who youre insuring
• Identify owned and rented property
• Identify insurance coverage and limits
• Identify gaps and unique exposures

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Coverage

• Bodily injury
• Personal Injury
• Advertising Injury
• Property Damage
• Limited exclusions
• Broader Definitions

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EXCLUSIONS

• Workers Compensation employment practices

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property
• Auto/ENOL

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property

• DO

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property

• DO
• Pollution

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property

• DO
• Pollution
• Household

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EXCLUSIONS

• Workers Compensation employment practices
• Intentional Acts
• Section I/First Party
• Aircraft
• Professional
• Business/Business Property

• DO
• Pollution
• Household
• Illegal Discrimination

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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?

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What about non-owned cars?

• Extended Use of Non-owned autos?
• Named Non-Owner?
• 99 10? 99 17?

When does underwriting call for these?
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Challenges

• What about Maintenance of Underlying?
• Renewal underwriting
• Condominiums