Umbrella Insurance

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The more your earning power and assets increase, the more you have at risk, and therefore, the more you need to protect.
If you think you need at least a million dollars of additional protection above your current homeowners or automobile liability limits, you can purchase something called excess liability. Often referred to as an umbrella policy, excess liability is the additional protection you need in case a judgment against you exceeds the liability limits of your existing auto or homeowners policy. Available in amounts ranging from one to five million dollars, excess liability coverage increases your personal liability limits by adding protection to your current auto, boat or homeowners policies.

Liability for bodily injury or property damage arising out of:

  1. The ownership of such vehicle or craft by an “insured”.
  2. The maintenance, occupancy, operation, use, loading or unloading of such vehicle or craft by any person.
  3. The entrustment of such vehicle or craft by an “insured” to any person.
  4. The failure to supervise or negligent supervision of any person involving such vehicle or craft by an “insured”.
  5. Vicarious liability, whether or not imposed by law, for the actions of a child or minor involving such vehicle or craft.
Auto means:
  1. A private passenger motor vehicle, motorcycle, moped or motor home.
  2. A vehicle designed to be pulled by a private passenger motor vehicle or motor home.
  3. A farm wagon or farm implement while towed by a private passenger motor vehicle or motor home.
Bodily Injury means bodily harm, sickness or disease, including required care, loss of services and death that results.
Business means:
  1. A trade, profession or occupation engaged in on a full-time, part-time or occasional basis
  2. Any other activity engaged in for money or other compensation, except the following:
    1. One or more activities, not described in b. through d. below, for which no “insured” receives more than $2000 in total compensation for the 12 months before the beginning of the policy period.
    2. Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity.
    3. Providing home day care services for which no compensation is received, other than the mutual exchange of such services.
    4. The rendering of home day  care services to a relative of an “insured”.
Family member means a resident of your household who is:
  1. Your relative, including a ward or foster child.
  2. Under the age of 21 and in the care of you or an “insured” who is age 21 or over.

Fuel System means:

  1. One or more containers, tanks or vessels which have a total combined storage capacity of 100 or more U.S. gallons of liquid fuel; and:
    1. Are, or were, located on any single location covered by “underlying insurance”; and
    2. Are, or were, used to hold liquid fuel that is intended to be used solely for one or more of the following:
      1. To heat or cool a building;
      2. To heat water;
      3. To cook food; or
      4. To power motor vehicles, other motorized land conveyances or watercraft owned by an “insured”.
  2. Any pumping apparatus, which includes the motor, gauge, nozzle, hose or pipes that are, or were, connected to one or more containers, tanks or vessels.
  3. Filler pipes and flues connected to one or more containers, tanks, or vessels.
  4. A boiler, furnace  or a water heater, the liquid  fuel for which is stored in a container, tank or vessel.
  5. Fittings and pipes  connecting the boiler, furnace  or water heater to one or more containers, tanks or vessels.
  6. A structure that is specifically designed and built to hold the liquid fuel that escapes from one or more containers, tanks or vessels.
Insured means:
  1. You.
  2. A “family member”.
  3. Any person using an “auto”, “recreational motor vehicle”, or watercraft, which is owned by you and covered under this policy. Any person using a temporary substitute for such “auto” or “recreational motor vehicle” is also an “insured”.
  4. Any other person or organization but only with respect to the legal responsibility for acts or omissions of you or any “family member” while you or any “family member” is using an “auto” or “recreational motor vehicle” covered under this policy. However, the owner or lessor of an “auto” or “recreational motor vehicle” loaned to or hired for use by an “insured” or on an “insured’s” behalf, is not an “insured”.
  5. With respect to animals owned by you or any “family member”, any person or organization legally responsible for such animals. However, a person or organization using or having custody of such animals in the course of any “business” or without the consent of the owner is not an “insured”.
Occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period, in:
Personal injury means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period:

Personal injury means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period:

  1. False arrest, detention or imprisonment;
  2. Malicious prosecution;
  3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor.
  4. Oral or written publication of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services; or
  5. Oral or written publication of material that violates a person’s right of privacy.

Property damage means physical injury to, destruction of, or loss of use of tangible property.

Recreational motor vehicle means:

  1. All-terrain vehicle;
  2. Dune buggy;
  3. Golf cart;
  4. Snowmobile; or
  5. Any other motorized land vehicle which is designed for recreational use off public roads.

Retained limit means:

  1. The total limits of any “underlying insurance” or any other insurance that applies to an “occurrence” or offense which:
    1. Are available to an “insured”; or
    2. Would have been available except for the bankruptcy or insolvency of an insurer providing “underlying insurance”; or
  2. The deductible, if any, as stated in the Declarations, if the “occurrence” or offense:
    1. Is covered by this policy; and
    2. Is not covered by “underlying insurance” or any other insurance.
Underlying insurance means any policy providing the “insured” with primary liability insurance covering one or more of the types of liability listed in the Declarations and at limits no less than the retained policy limits shown for those types of liability listed in the Declarations.
We will pay for damages, in excess of the “retained limit”, for:
  1. Bodily injury or property damage for which an “insured” becomes legally liable due to an “occurrence” to which this insurance applies; and
  2. Personal injury for which an insured becomes legally liable due to one or more offenses listed under the definition of personal injury to which this insurance applies. Damage include prejudgment interest awarded against the insured.
  1. If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence or personal injury caused by an offense to which this policy applies, we:
    1. Will provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. However, we are not obligated to defend any suit or settle any claim if:
      1. The occurrence is covered by other underlying insurance available to an insured; or
      2. There is no applicable underlying insurance in effect at the time of the occurrence or offense and the amount of damages claimed or incurred is less than the applicable deductible amount shown in the Declarations.
    2. May join, at our expense, with the insured or any insurer providing underlying insurance in the investigation, defense or settlement of any claim or suit which we believe may require payment under this policy.
    3. However, we will not contribute to the costs and expenses incurred by any providing underlying insurance; and
    4. Will pay any expense incurred for the insured’s defense, with our written consent, in any country where we are prevented from defending an insured because of laws or other reasons.
  2.  We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the “occurrence” or offense has been exhausted by payment of judgments or settlements.
  1. Expenses we incur and costs taxed against an “insured” in any suit we defend;
  2. Premiums on bonds required in a suit we defend, but not for bond amounts to the extent they exceed our limit of liability. We need not apply for or furnish any bond; and
  3. Reasonable expenses incurred by an “insured” at our request, including actual loss of earnings (but not loss of other income) up to $250 per day, for assisting us in the investigation or defense of a claim or suit; and
  4. Interest on our share of the judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court, that part of the judgment which does not exceed the limit of liability that applies. These payments will not reduce the limit of liability.

Our total liability under this policy for all damages resulting from any one occurrence or offense will not be more than the limit of liability as shown in the Declarations of this policy. This limit is the most we will pay regardless of the number of insureds, claims made, persons injured, or vehicles involved in an accident.

  1. Bodily injury or property damage which is expected or intended by an insured even if the resulting bodily injury or property damage:
    1. Is of a different kind, quality or degree than initially expected or intended; or
    2. Is sustained by a different person, entity, real or personal property, than expected or intended.
    3. Caused by or at the direction of an insured with the knowledge that the act would violate the rights of another and would inflict personal injury;
    4. Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity;
    5. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period;
    6. Arising out of a criminal act committed by or at the direction of an insureds; or
    7. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by the insured;
  2. Bodily injury, personal injury or property damage arising out of or in connection with a business:
    1. Engaged in by an insured; or
    2. Conducted from:
      1. Any part of a premises owned by or rented to an insured; or
      2. Vacant land owned by or rented to an insured.
  1. The rental or holding for rental of:
    1. The residence premises shown in the Declarations:
      1. On an occasional basis if used only as a residence;
      2. In part, for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or
      3. In part, as an office, school, studio or private garage;
    2. Any part of a one to four family dwelling other than the residence premises to the extent that personal liability coverage is provided by underlying insurance;
    3. A condominium, cooperative, or apartment unit other than the residence premises to the extent that personal liability coverage is provided by underlying insurance;
  2. Civic or  public  activities performed  by an  “insured”  without  compensation other than reimbursement of expenses;
  3. An insured minor involved in self- employed “business” pursuits, which are occasional or part-time and customarily undertaken on that basis by minors. A minor means a person who has not attained his or her:
    1. 18th birthday; or
    2. 21st birthday if a full-time student
  4. The use of an auto you own, or a temporary substitute for such auto, by you, a family member or a partner, agent or employee of you or a family member while employed or otherwise engaged in the business of: (1) Selling; (2) Repairing; (3) Servicing; (4) Storing; or (5) Parking; vehicles designed for use mainly on public highways;
  5. The use of an auto for business purposes, other than an auto business, by an insured;
  6. Bodily  injury”  or  “property  damage” arising  out  of  the  ownership  or  operation of  an  “auto” while  it  is  being  used  as  a public  or  livery  conveyance.
  7. Bodily injurypersonal injury or property damage arising out of the rendering of or failure to render professional services;
  8. Aircraft Liability
  9. Hovercraft Liability
  10. Watercraft Liability
  11. Recreational Motor Vehicle Liability
    1. Owned by you or a family member to the extent that recreational motor vehicle coverage is provided by underlying insurance at the time of the occurrence;
    2. That you or a family member do not own;
  12. Bodily injury or property damage caused directly or indirectly by war, including the following and any consequence of any of the following:
    1. Undeclared war, civil war, insurrection, rebellion or revolution;
    2. Warlike act by a military force or military personnel; or
    3. Destruction, seizure or use for a military purpose.
  13. A person using an auto, recreational motor vehicle or watercraft without a reasonable belief that that person is entitled to do so.
  14. The use of autos, recreational motor vehicles or watercraft while they are being operated in, or practicing for, any prearranged or organized race, speed contest or other similar competition.
    1. Sailboats; or
    2. Watercraft involved in predicted log cruises;
  15. “Bodily injury” or personal injury to you or any family member.
    1. This exclusion also applies to any claim made or suit brought: a. To repay; or b. Share damages with; another person who may be obligated to pay damages because of bodily injury or personal injury to you or a family member.
  16. Bodily injury or personal injury arising out of:
    1. The transmission of a communicable disease by an insured;
    2. Sexual molestation, corporal punishment or physical or mental abuse; or
    3. The use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance(s) as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs.
  17. Bodily injury, personal injury, or property damage  arising out of an act or omission of an insured as an officer or member of a board of directors of a corporation or organization. However, this Exclusion does not apply if the corporation or organization is not-for-profit and the insured receives no compensation other than reimbursement of expenses;
  18. Property damage to property owned by an insured. This includes costs or expenses incurred by an insured or others to repair, replace, enhance, restore or maintain such property to prevent injury to a person or damage to property of others, whether on or away from the residence premises shown in the Declarations;
  19. Property damage to property rented to, occupied or used by, or in the care, custody or control of, an insured to the extent that the insured is obligated by contract to provide insurance for such property. However, this Exclusion (A.17.) does not apply to property damage caused by fire, smoke or explosion;
  20. “Bodily injury” to any person eligible to receive any benefits:
    1. Voluntarily provided; or
    2. Required to be provided; by an insured under any: (a) Workers’ compensation law; (b) Non-occupational disability law; or (c) Occupational disease law;
  21. Bodily injury or property damage for which an insured under this policy:
    1. Is also an insured under a nuclear energy liability policy issued by the: (1) Nuclear Energy Liability Insurance Association; (2) Mutual Atomic Energy Liability Underwriters; or (3) Nuclear Insurance Association of Canada; or any of their successors; or
    2. Would be an insured under that policy but for the exhaustion of its limit of liability.
  22. “Bodily injury”, “personal injury” or “property damage” caused by an “occurrence” or offense involving the escape of fuel from a “fuel system”;
  23. “Bodily injury” or “personal injury” caused by an “occurrence” or offense involving the absorption, ingestion or inhalation of lead;
  24. “Personal injury” or property damage caused by an “occurrence” or offense of lead contamination.
Liability coverage does not apply to any assessment charged against you as a member of an association, corporation or community of property owners.

You must maintain the underlying insurance at the full limits stated in the Declarations with no change to more restrictive conditions during the term of this policy. If any underlying insurance is canceled or not renewed and not replaced, you must notify us at once.

If you fail to maintain underlying insurance, we will not be liable under this policy for more than we would have been liable if that underlying insurance was in effect.

In case of an “occurrence” or offense likely to involve the insurance under this policy, you or another “insured” will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed:
  1. Give written notice to us or our agent as soon as is practical. Such notice shall set forth:
    1. The identity of the policy and named insured shown in the Declarations;
    2. Reasonably available information about the time, place and circumstances of the occurrence or offense; and
    3. The names and addresses of any claimants and witnesses.
  2. If a claim is made or a suit is brought against an insured, the insured must:
    1. Notify us immediately in writing;
    2. Cooperate with us in the investigation, settlement or defense of any claim or suit
    3. Promptly forward to us every notice, demand, summons or other process relating to the “occurrence” or offense;
    4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an insuredc. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witness.
  3. The insured will not, except at the insured’s own cost, voluntarily  make payment, assume obligation or incur expense to others.
  1. Appeals 
    1. If the insured or any insurer providing underlying insurance elects not to appeal a judgment which exceeds the retained limit, we may do so at our own expense. We will pay all costs, taxes, expenses and interest related to our appeal. The amounts we pay will be in addition to our limit of liability.
  2. Bankruptcy of An Insured
    1. Bankruptcy or insolvency of an insured will neither:
      1. Relieve us of our obligations under this policy; nor
      2. Operate to cause this policy to become primary in the event the “insured” is unable to satisfy the “retained limit” either because of insufficient underlying insurance or insufficient underlying insurance of insufficient personal assets.
  3. Bankruptcy of An Underlying Insurer
    1. In the event of bankruptcy or insolvency of any underlying insurer, the insurance afforded by this policy shall not replace such underlying insurance, but shall apply as if the underlying insurance was valid and collectible.
  4. Fraud
    1. We do not provide coverage for any “insured” who has made fraudulent statements or engaged in fraudulent conduct in connection with any “occurrence” or offense for which coverage is sought under this policy.
  5. Liberalization Clause
    1. If we make a change which broadens coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the Declarations.
    2. This Liberalization Clause does not apply to changes implemented with a general program revision that includes both broadenings and restrictions in coverage, whether that general program revision is implemented through introduction of: 1. A subsequent edition of this policy; or 2. An amendatory endorsement.
  6. Other Insurance
    1. The coverage afforded by this policy is excess over any other insurance available to an insured, except insurance written specifically to be excess over this policy.
  7. Our Right To Recover Payment
    1. If we make a payment under this policy, we are entitled to exercise the insured’s rights of recovery against any person liable for the loss. The insured must do nothing after loss to prejudice those rights.
  8. Policy Period and Territory
    1. The policy period is stated in the Declarations. This policy applies to an “occurrence” or offense which takes place anywhere in the world.
  9. Severability Of Insurance
    1. This insurance applies separately to each “insured”. However, this provision will not increase our limit of liability for any one “occurrence” or offense.
  10. Suit Against Us
    1. 1. No legal action can be brought against us: a. Unless there has been full compliance with all the terms of this policy; and b. Until the obligation of the insured has been determined by final judgment or by agreement signed by us.
    2. 2. No person or organization has any right under this policy to join us as a party to any legal action against an insured.
  11. Termination
    1. Cancellation By You You may cancel this policy by:
      1. Returning it to us; or
      2. Giving us advance written notice of the date cancellation is to take effect.
    2. Cancellation by Us
      1. We may cancel this policy as stated below by letting you know in writing of the date cancellation takes effect. This cancellation notice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing will be sufficient proof of notice.
    3. Non renewal
      1. We may elect not to renew this policy. We may do so by delivering to you, or mailing to you at your mailing address shown in the Declarations, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice.
    4. Other Termination Provisions 
      1. When this policy is canceled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata.
      2. If the return premium is not refunded with the notice of cancellation or when this policy is returned to us, we will refund it within a reasonable time after the date cancellation takes effect.
  12. Transfer of Your Interest In This Policy 
    1. Your rights and duties under this policy may not be assigned without our written consent. However, if you die, coverage will be provided for:
      1. The surviving spouse if resident in the same household at the time of death. Coverage applies to the spouse as if a named insured shown in the Declarations;
      2. Any member of your household who is an insured at the time of your death, but only while a resident of the residence premises; or
      3. The legal representative of the deceased person as if a named insured shown in the Declarations. This applies only with respect to the representative’s legal responsibility to maintain or use your autos or the residence premises shown in the Declarations.
    2. Coverage will only be provided until the end of the policy period
  13. Waiver or Change of Policy Provisions
    1. This policy contains all the agreements between you and us. Its terms may not be changed or waived except by endorsement issued by us. If a change requires a premium adjustment, we will adjust the premium as of the effective date of the change.

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