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Jan 2012--Feb 2012
| NEWSLETTER |
[These documents are not legal
opinions and should not be relied
upon as such.
The intent of this article is to provide
general background on topics of
interest
discussed, not to provide legal
advice. Please contact your agent in
regards to
situations or specific questions
regarding the topic or topics
covered.]
opinions and should not be relied
upon as such.
The intent of this article is to provide
general background on topics of
interest
discussed, not to provide legal
advice. Please contact your agent in
regards to
situations or specific questions
regarding the topic or topics
covered.]
| PA: Why do I need a Personal Umbrella |
Insurance Agents & Brokers (IA&B) released an important article regarding
umbrella coverage. We would like to share the article in order to provide insight
on how important it is to prepare and protect you and your family in a litigious
society.
There is no question that the ownership and use of our autos present us with
the greatest personal liability exposure. But our normal activities can expose us
to the potential of a large liability claim that could threaten our personal assets.
One of the best ways to understand the need for a Personal Umbrella policy is
to review actual claim examples. Listed below are actual person liability claims
that illustrate the need for higher personal liability limits.
umbrella coverage. We would like to share the article in order to provide insight
on how important it is to prepare and protect you and your family in a litigious
society.
There is no question that the ownership and use of our autos present us with
the greatest personal liability exposure. But our normal activities can expose us
to the potential of a large liability claim that could threaten our personal assets.
One of the best ways to understand the need for a Personal Umbrella policy is
to review actual claim examples. Listed below are actual person liability claims
that illustrate the need for higher personal liability limits.
Looking for fun and informative insurance facts, or just want to support your local
businesses? Come Join us on Facebook!
* A babysitter left a 5-month-old infant unattended in a walker. The infant toppled the walker, struck her head on
the floor and suffered brain damage. The parent of the infant sued the teenage babysitter and her parents. The
court awarded the parents $11,000,000.
* A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and,
as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found
the homeowners to be 60 percent responsible and the pool manufacturer to the 40 percent responsible, and
awarded $10,000,000.
* An 18-year-old college student was struck by a fraternity paddle during initiation. He sustained facial fractures
and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded
$1,300,000.
* The insured’s 18-year-old son was driving his parents’ car to the store with his 19-year-old girl friend. He left the
roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the
girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and
internal injuries and received physical therapy. The Personal Umbrella insurer settled with the girlfriend for the
policy limit.
* A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by
some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto
accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme
Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries
caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption
of alcohol by the minors on their premises. Both the Homeowners’ and Personal Umbrella policies responded to
this claim.
The above losses show the consequences of situations that can quickly exhaust the liability limits of the
underlying policies.
For less than the cost of a cup of coffee a day, most folks can purchase a Personal Umbrella policy with a
limit of $1,000,000, possibly $2,000,000 or even $5,000,000.
Jerry Milton, CIC, contributed this resource. The legal profession recognizes him as an expert on insurance coverages. He is also
an education consultant for IA&B, working with CISR, CIC and continuing education programs.
The information contained in this resource is current as of the published
date: June 27, 2011, November 2011 © Insurance Agents & Brokers – All rights Reserved . Content has been edited in order to fit
the newsletter format.
For more details go to: www.iabgroup.com
