Like all insurance policies, an Ohio umbrella insurance policy does not cover everything. Here are two exceptions that may not be known to you, but you should know about. If you are interested in discussing umbrella insurance, call or click!
Personal umbrella insurance does NOT cover punitive damages
What does it mean? Punitive damages are legal for damages that are intended to punish the other party. They are meant to "lead by example" or "send a message" if you will.
Punitive damages are awarded for outrageous, completely ruthless behavior ̵
You can usually buy $ 1 million umbrella policies for $ 200 to $ 300 a year. If you need more than $ 1 million, you can usually buy each additional $ 1 million in coverage for $ 100 to $ 200. Think about this. For just a few hundred dollars, you can raise your liability limits per person 10 times, 20 times, even 30 times – and this applies to both your car policy and homeowners / tenants / apartments.
Personal umbrella insurance does NOT cover an insured business as a director or official
This is usually a surprise to many. Do you serve as a board member? Many of us do. There has been a long-standing assumption that an umbrella policy will provide liability protection when he sits on the board. This only applies if the following conditions are met:
– Companies or associations must be non-profit / non-profit.
– You can not receive any remuneration for serving on the board.
If the board is a for-profit company and / or you are paid for your service, the umbrella policy will not cover liability for your activities on the board.
Here are some examples of more typical exceptions ~ Aircraft
~ Damage to an insured – you can not be liable to yourself. Remember that liability insurance pays for bodily injury or property damage to OTHERS. You, your spouse and family members are NOT others.
~ Professional Services – Think of mistakes or errors and omissions, such as medical malpractice or professional insurance for lawyers, realtors, financial planners and of course insurance agents.
~ Intentional acts – if you cause harm or injury to a person intentionally, no coverage. However, this does not apply if it is self-defense.
~ Nuclear power
~ Business – why? Because business umbrellas exist for business responsibility. The personal umbrella is not designed to give a company protection.
A personal umbrella insurance from Ohio will help you live your everyday life with less worries. Call or click today! We are happy to make a complete package so that you can live your life with fewer worries.