Personal Group Umbrella Coverage FAQs

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CONFRONT RISK, PROTECT WHAT’S IMPORTANT, PRESERVE ASSETS.

WHAT IS A PERSONAL GROUP UMBRELLA & WHY DO I NEED IT?
Now more than ever before, Americans are confronted by multiple risks that threaten financial assets and lifestyles. Personal liability lawsuits can run in the multi-million dollar range, and in such cases, personal liability insurance alone may not be enough. Personal Group Umbrella Coverage offers an attractive solution for helping to preserve your assets in the face of an ever-increasing array of financial loss exposures.

 

HOW DOES A PERSONAL GROUP UMBRELLA WORK?
Group participants have a range of limits to choose from and are charged the corresponding premium. Participants receive an added layer of insurance coverage that sits above their auto, home, and watercraft insurance. This layer of coverage is extremely important because personal liability lawsuits can run into the multi-million dollar range, and in such cases, underlying personal liability coverage is not enough.

 

WHAT IS COVERED UNDER THE GROUP UMBRELLA POLICY?
Personal Group Umbrella Coverage provides you or a family member with broad protection and liability limits in excess of your primary auto, homeowners, renters, recreational vehicle, motorcycle, and watercraft insurance policies. Coverage includes personal injury and property damages for which you or a covered household member may be legally responsible in the event of a personal liability lawsuit. Large watercraft and personal watercraft are covered on a first-dollar basis if rented or furnished for 60 days or less. Defense costs for a covered loss are included in addition to the policy limit.

 

WHO IS COVERED WITHIN THE GROUP UMBRELLA POLICY?
A “covered person” includes the person who enrolls as a part of the group policy (as shown on participant list) and that person’s spouse or domestic partner, any relative, or any other person under 25 who is in the insured’s or the relative’s care, all of whom must be residents of the same household. Additionally, coverage extends to “permissible use”, which includes any person using a covered vehicle or watercraft with permission from the certificate holder or a family member with respect to their legal responsibility arising out of its use.

 

WHAT TYPES OF INJURIES ARE INCLUDED IN THE PERSONAL INJURY COVERAGE?
“Personal Injury” includes: shock, mental anguish, or mental injury; false arrest, false imprisonment, or wrongful detention; wrongful entry or eviction; malicious prosecution or humiliation; libel, slander, defamation of character, or invasion of privacy; and bodily injury including sickness or disease that results from physical bodily harm.

 

DOES A GROUP MEMBER HAVE PERSONAL EXCESS LIABILITY COVERAGE FOR A RENTAL HOME THAT IS LEASED FOR INCOME?
The group policy will provide excess liability coverage if a rental property is covered by the participant’s underlying personal liability policy and meets the definition of “incidental business property” under the group policy.

 

ARE PROFESSIONAL AND BUSINESS ACTIVITIES INCLUDED?
Professional activities are not included in the coverage, but incidental business/farming activities and property are covered by the group liability policy, subject to the limitations and exclusions stated in the policy under “business pursuits.”

 

IS COVERAGE INCLUDED FOR A DIRECTOR OR OFFICER OF A NOT-FOR-PROFIT ORGANIZATION?
Coverage is included for a covered person’s actions or failure to act arising from activities as a non-compensated director or officer of a not-for-profit organization.

 

I ALREADY HAVE AN INDIVIDUAL EXCESS LIABILITY POLICY WITH ANOTHER CARRIER, WILL THE PERSONAL GROUP UMBRELLA COVERAGE BE IN EXCESS OF THAT POLICY?
Personal Group Umbrella Coverage is intended to replace your existing individual excess liability policy. Since group rates are typically lower than individual policy rates, the cost to you for the Personal Group Umbrella Coverage may be lower than what you would pay for comparable coverage under your individual policy. And, by enrolling as a member of a group, you get additional coverages at no added cost to you.

 

CAN PERSONAL GROUP UMBRELLA COVERAGE BE CONVERTED TO A PERSONAL UMBRELLA POLICY IF I LEAVE THE GROUP OR IF THE GROUP POLICY CEASES TO EXIST?
No. The policy is not convertible. We recommend that you talk with your personal agent or broker.

Cherry Bekaert Benefits Consulting, LLC is a Chernoff Diamond Affiliate. Chernoff Diamond & Co., LLC is a Managing Member of Cherry Bekaert Benefits Consulting. Chernoff Diamond & Co., LLC offers Investment Advisory Services through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond & Co., LLC is independently owned and operated. Chernoff Diamond & Co., LLC, is a member of M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship.

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