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What is not covered by a personal umbrella policy



Like all insurance policies, an Ohio umbrella insurance policy does not cover everything. This article lists several common exceptions, including two that are a surprise to many.

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 – at least what a judge or jury perceives as 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 activities for an insured as a director or officer

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. Not always.

Some insurance companies make an exception, however, if the following conditions are met:

– Business or association must be non-profit / non-profit; AND / OR
– 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 be responsible for your activities on the board. Although this is a fairly common practice, note that I speak in general. When in doubt, ASK your insurance agent or company for clarification.

Additional personal umbrella policy 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 malpractice 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 with intent, no coverage. However, this does not apply if it is self-defense.
  • War
  • Nuclear Power
  • Pollution
  • Business – Why? Because business umbrellas exist for business responsibility. The personal umbrella is not designed to give a company protection.

Worried you do not have the Ohio insurance you need? Call or fill out the form below. We are happy to review your insurance and provide a package that is designed to reduce your worries!


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