Filling the Gaps of Your Insurance Policy
Golf courses with fairways paralleling a street will post the message “You’re Responsible for Your Errant Shots,” meaning if your golf shot hits a passing vehicle, you’re responsible for any damage. Responsibility is the basis of liability, and that type of liability is covered in your homeowner’s or renter’s insurance policy. The policy language explains that your insurance company will pay compensatory damages up to your policy limit if you’re legally liable for bodily injury or property damage as covered by the policy and not excluded. In addition to sports activities, examples of covered occurrences are liability to others (someone trips on a broken step at your home), acts of your pet (dog-bite liability), negligent acts of your children, medical payments to others (regardless of liability), and liability due to unpaid volunteer services.
Coverage is also included for legal defense if a suit is brought against you. It’s stated in the liability coverage section that the obligation of your insurance company to defend any claim or suit ends when the amount they’ve offered or paid for damages resulting from the occurrence equals their limit. In today’s world of increasing lawsuits and if you have personal assets, you need to make sure the liability limit of your homeowner’s or renter’s policy isn’t the only protection you have.
A personal liability umbrella policy will increase your protection beyond your homeowner’s and automobile insurance liability. It also can fill in the gaps left by certain things that aren’t covered by homeowner’s and automobile policies, such as libel and slander. Every recreational vehicle, watercraft, rental dwelling, and seasonal dwelling you own also will have extended liability. The personal umbrella policy generally is written for $1 million of coverage; higher limits are available for those who qualify. Business owners need to consider commercial umbrella liability insurance for the same reasons you need it personally. Depending on your business structure, a lawsuit could jeopardize your personal assets.
Now back to the errant golf ball—chances are, if you do strike a moving vehicle the owner won’t try to locate you on the course, but if you’re approached, confess and make the claim to your company. There’s no deductible, and more importantly, it’s why you have insurance. TPW
Coverage is also included for legal defense if a suit is brought against you. It’s stated in the liability coverage section that the obligation of your insurance company to defend any claim or suit ends when the amount they’ve offered or paid for damages resulting from the occurrence equals their limit. In today’s world of increasing lawsuits and if you have personal assets, you need to make sure the liability limit of your homeowner’s or renter’s policy isn’t the only protection you have.
A personal liability umbrella policy will increase your protection beyond your homeowner’s and automobile insurance liability. It also can fill in the gaps left by certain things that aren’t covered by homeowner’s and automobile policies, such as libel and slander. Every recreational vehicle, watercraft, rental dwelling, and seasonal dwelling you own also will have extended liability. The personal umbrella policy generally is written for $1 million of coverage; higher limits are available for those who qualify. Business owners need to consider commercial umbrella liability insurance for the same reasons you need it personally. Depending on your business structure, a lawsuit could jeopardize your personal assets.
Now back to the errant golf ball—chances are, if you do strike a moving vehicle the owner won’t try to locate you on the course, but if you’re approached, confess and make the claim to your company. There’s no deductible, and more importantly, it’s why you have insurance. TPW