FAQs – Frequently Asked Questions

Please find below answers to some Frequently Asked Questions (FAQs) about the Group Personal Umbrella program. Hopefully, these address any questions you have for us but, if not, please feel free to contact us by visiting our Contact Us page.

1) Why do I need an umbrella policy?

Umbrella policies are considered by many to be the best value in insurance today. For a nominal amount ($255 for $1M of coverage, for example), you have excess coverage against all manner of potential exposures.

2) Why do I need to have Uninsured or Underinsured coverage (UM/UIM) in my umbrella policy?

The Insurance Research Council estimates that 16% of all drivers on the road today do not have auto insurance (Uninsured). Further, industry estimates predict that up to an additional 30% of drivers do not carry sufficient insurance (underinsured). Thus, as many as 46% of drivers on the road today do not have sufficient insurance to respond in an auto accident. Our Group Personal Umbrella policy provides $1M of Excess UM/UIM coverage.

3) Is there world-wide coverage, i.e., coverage for suits brought within and outside the United States?

Excess liability and UM/UIM follow the territory definitions of the underlying policies. Umbrella liability is worldwide, except in sanctioned or embargoed countries. However, please note that this policy is only intended for US-based employees.

4) Is there coverage for damage caused by rented vehicles, boats, rental dwellings, rented automobiles and recreational vehicles?

Excess coverage provides for Bodily Injury, Personal Injury and Property Damage for rented autos, RVs, and Boats. Umbrella coverage provides 30 days of coverage.

There is also coverage for liability that arises from a dwelling rented from others. (Vacation Home)

And, there is coverage for 1 – 4 family dwellings rented to others (including Condos or Cooperatives).

5) Is there coverage for driving non-owned vehicles?

Coverage applies for 30 days. After 30 days, underlying coverage is required.

6) Is there coverage for vicarious liability for other drivers’ negligence?

We offer coverage for another driver, driving your car, as long as that driver has the insured owner’s permission and there is no exclusion or limitation on the underlying policy.

7) Is there coverage for motorcycle guest passenger liability?

Yes. We offer coverage for motorcycle passenger liability unless excluded or limited under the underlying policy.

8) Is there coverage for premises injuries relating to home business activities?

Yes. Automatic coverage for Bodily Injury and Property Damage related to a home-based business as long as it is not excluded by the underlying policy and does not exceed $25,000 in gross annual receipts. This does not apply to Daycare businesses.

9) Is there coverage for automobile liability for business deliveries, i.e., pizza deliveries, newspaper delivers, etc.?

Yes, as long as the underlying insurance applies.

10) Is there coverage for injury to domestic employees?

Yes, as long as the underlying insurance applies.

11) Is there coverage for bodily injury and property damage liability for services on a non-profit board?

Yes. We also include coverage for bodily injury, personal injury and property damage liability for services (but not legal services) on a non-profit board. Officers may receive pay – so long as it is not for legal work.

12) Is there coverage for sailboat racing?

Yes, for both owned and non-owned sailboats.

13) Is there coverage for newly-acquired motor vehicles, recreational equipment or watercraft after 30 days?

Yes, if it is covered by the primary underlying policy.

14) Is there pollution coverage?

Our excess policy follows the wording on the underlying policy. We also provide Bodily Injury, Property Damage and Personal Injury from a hostile fire if covered in the underlying.

November 17th, 2015 by Massachusetts & New England Financial Services