From the Front Lines: Personal Umbrella

How did you get started at your agency?

I started in the insurance industry on the carrier side in 1986. I made the decision to move to the agency side in 2000 and chose Cross Insurance as the agency to continue my career with. They were one of my agents when I was on the carrier side and I always respected the leadership and integrity of this agency.

Why a personal umbrella?

A properly chosen umbrella policy can help manage the liability gaps in the underlying policy to protect the assets of the client. Underlying policy limits are not always enough when you’re involved in a lawsuit. For example, on an auto policy, if you have state minimum liability limits, it might not be enough in the event of an accident and a lawsuit. The personal umbrella can pick up when the underlying policy limits are exhausted.

Biggest personal umbrella changes?

With the increasingly litigious society we’re all living in, personal umbrella coverage has become more important than ever before. The U.S. has a larger percentage of practicing attorneys than any other country—it’s a good idea to have a personal umbrella.

Especially with social media, you hear a lot on the news about the bullying, libel, slander, and the like. Some parents have no idea that they’re responsible for their children’s actions and their policies could come into play in a lawsuit.

Biggest personal umbrella challenges?

Trying to convince the client that a lawsuit could happen to them. We give them claims examples and stories, but no one wants to believe they could end up in the middle of a lawsuit for any reason. Hiding from it doesn’t make it go away, so we try to explain that anyone is susceptible to a lawsuit.

The continued challenge is making sure that the client understands what the need is and that they do in fact need that coverage—not waiting to hear them say, “I should have bought it when I had the opportunity.” It’s better to have it and not use it than to need it and not have it.

Future of Personal Umbrella?

I see the popularity of personal umbrella insurance growing, as long as we continue to educate everyone. The fact is that the umbrella is very affordable when you take into consideration what you have to lose. Moving forward, I see more umbrellas being written in the insurance market than ever before.

Advice for a fellow personal umbrella agent?

Other than educating clients on the importance of it, make sure that the coverage is offered. It’s best to offer the coverage and let the client decline it.

Favorite personal umbrella success story?

One of my clients, he’s a surgeon. He was parked in his vehicle and he was hit by another vehicle which not only caused property damage, but bodily injury to him. Because he had excess uninsured auto coverage, which isn’t offered on all umbrellas, he was able to eliminate any out-of-pocket cash. The person who hit him had only state minimum liability limits, so when they exhausted that person’s limits, my client’s limits picked up where theirs left off.

It’s important to make sure the coverage meets the requirements of the client’s needs. Not all umbrellas are the same.

Will Jones is the IA assistant editor.