UNIGARD INSURANCE COMPANY. Idaho PERSONAL UMBRELLA MANUAL

Transcription

1 UNIGARD INSURANCE COMPANY Idaho PERSONAL UMBRELLA MANUAL

2 Idaho Personal Lines Personal Umbrella i Application Binding Coverage Increased Limits Limits of Liability Introduction Policy Term Premium Determination Retained Limits Required Limits of Underlying Insurance Retained Limit Credit Uninsured/Underinsured Motorist Coverage

3 Idaho Personal Lines Personal Umbrella 1 An insured doesn't have to own a yacht or a castle in Spain to need Personal Umbrella coverage. Today it is common for jury awards and out of court settlements to routinely run into hundreds of thousands and even millions of dollars. A large judgment against your client may place his or her assets in serious jeopardy. You can take steps to protect them with a Personal Umbrella Liability Policy. While existing auto, homeowner and watercraft policies may seem adequate, the limits they provide may prove insufficient in the event of a catastrophic loss. Pool accidents, dog bites, boating mishaps and head-on collisions are all examples of incidents that regularly result in large awards to an injured or deceased party. By supplementing existing coverage with a Personal Umbrella Liability Policy, your client's protection can be increased by up to $5 million. Offering the Personal Umbrella Liability Policy also helps protect you. Unfortunately, in today's litigious society, insurance agents are sued with alarming frequency. Commonly, the reason for this stems from failure to advise clients of all available coverages and limits. To protect yourself against potential E & O losses, offering a Personal Umbrella Liability Policy may provide the right answer. This policy is for personal liability and does not extend to professional or business activities other than the type of business liability normally covered by the liability section of a homeowner policy. Examples are activities incident to employment by another or activities of an incidental business nature not conducted in conjunction with a regular business, profession or occupation. Coverage The Unigard Personal Umbrella Liability Policy will provide up to $5 million in protection over an insured's primary insurance program. This complements and expands his or her basic insurance program by: 1. Providing personal liability coverage above the limits of liability carried on the primary policies. 2. Providing umbrella or blanket protection beyond the normal coverage provided by the primary policies through a drop-down deductible feature. The policy applies in excess of a $250 retained limit in the self-insured area where the Unigard Personal Umbrella Liability Policy is broader than the underlying coverage. Some of the examples of the coverage that may not be provided by primary underlying insurance are as follows: Personal injury protection including libel, slander, false arrest, humiliation, defamation of character, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution, etc. Worldwide coverage of autos and watercraft. 3. Providing following form coverage for items such as business pursuits, owned watercraft and recreational vehicles. Full defense coverage is provided in the drop-down deductible area from the first dollar of legal cost where coverage is not provided by underlying policies.

4 Idaho Personal Lines Personal Umbrella 2 Application A Personal Umbrella Application must be completed and signed by the insured for all risks. Policy Term All policies are written for a term of one year. Limits of Liability Personal Umbrella coverage limits up to $5 million are available. The single liability limit is applicable to each occurrence in excess of the underlying primary insurance or the specified self-insured retained limit. Uninsured/Underinsured Motorist Coverage Uninsured/Underinsured Motorist Coverage is not available as a coverage option. Binding Agents have binding authority for Personal Umbrella coverage with a $1,000,000 limit. All other limits may not be bound by the agent without prior authorization by Unigard. Increased Limits The rates shown are for a $1 million limit of liability. The premiums for $2, $3, $4 and $5 million limits are obtained by applying the appropriate factor to the sum of all applicable premiums and rates for $1 million. Limit of Liability 2nd million 3rd million 4th million 5th million Factor Retained Limits The minimum self-insured retention by the insured for exposures not covered by underlying insurance is $250. If the retained limit is higher than $250, a reduction in the premium is applicable. See Premium Determination, Retained Limit Credit.

5 Idaho Personal Lines Personal Umbrella 3 Required Limits of Underlying Insurance The following minimum underlying limits of insurance are required before a Personal Umbrella Liability Policy will be issued: Coverage Auto Liability (including licensed recreational vehicles) Unlicensed Recreational Vehicles Family Liability (Comprehensive Personal or Homeowner Section II) Required Limits of underlying Insurance $250,000/500,000 BI $100,000 PD or $500,000 Single Limit $500,000 Single Limit $500,000 Watercraft Liability $500,000 Premium Determination (The rates displayed are for $1 million base limit, one-year term) Personal Liability Initial Residence: 45 For each additional residence occupied by the insured 6 For each Residence held in Trust 15 Business Pursuits Initial office premises occupied by insured 10 For each additional office premises 30 For each Business Pursuits endorsement added to 30 insured s Homeowners policy For each Incidental Farming or Personal Farm Liability 38 endorsement added to insured s Homeowners policy For each home day care insured 50 Business Liability For each Owned Residential Premises occupied by others: In one unit buildings 6 In two unit buildings 12 In three unit buildings 18 In four unit buildings 24

6 Idaho Personal Lines Personal Umbrella 4 Premium Determination (Continued) Watercraft Liability Each watercraft, not including sailboats 25 Each sailboat Less than 26 feet in length No charge feet in length feet in length 63 Each personal watercraft 63 Auto Liability Each auto, pickup, SUV, van or motor home 50 Each driver under age For each non-owned vehicle available for use 15 Motorcycles Each motorcycle 40 Recreational Vehicles Each recreational vehicle not licensed for highway use and insured for use off insured s premises 40 Retained Limit Credit Apply the credit to the total premium for owner occupied residences. If there are no owner occupied residences be rated, the credit will be applied to the total premium for the auto liability. Retained Limit Deduct $500 $5 $1, $2, $5, $10, Minimum Premiums The following are the minimum premiums for each coverage limit. The minimums shown are not subject to any premium credits or increased limits factors. Limit Minimum Premium $1,000,000 $140 $2,000, $3,000, $4,000, $5,000,