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True Umbrella Insurance: An Overview

Prime’s TRU Umbrella Insurance: An Overview

Liability insurance protects your clients in the event of a major disaster, such as a purchased pool or trampoline that leads to serious injuries and a lawsuit. In this situation, homeowners insurance may cover medical bills, property damage, and legal costs, but this coverage is limited by liability policy limits.

The costs of major disasters can sometimes exceed these limits or not be covered at all because of exclusions on policies. This is where umbrella insurance comes in. Most umbrella policies don’t provide coverage like you think they do. They provide coverage above underlying policies so it’s really just excess over primary policies such as homeowners, auto, etc.

Prime’s TRU Umbrella Insurance can provide coverage where other policies or umbrellas leave your clients exposed due to exclusions in coverage. We also provide coverage above primary policies like today’s umbrella insurance.

As an insurance producer, you may want to offer your clients Prime’s TRU Umbrella insurance policy to give them the extra liability coverage they need. By partnering with Prime Insurance Company, you can provide your clients with this additional coverage for personal and commercial policies.

What Is Umbrella Insurance?

What Is Umbrella Insurance?

As a type of personal liability insurance, umbrella insurance is a fail-safe for a client’s savings and assets. An umbrella policy protects your clients like an umbrella protects them from rain. Suppose your client is sued for damages that exceed their liability limits on their homeowners insurance, auto insurance, boat insurance, or another policy. In that case, their umbrella policy helps cover the rest of what they owe. The umbrella policy pays out if your client is at fault for damage or injuries and the other policies are insufficient to cover costs.

While similar to excess liability insurance, umbrella insurance has a few key differences. Most umbrella policies provide additional coverage not included in a base insurance policy, whereas excess liability insurance gives the policyholder a higher limit on liability coverage the policy already includes.

What Is a Personal Umbrella Policy?

A personal umbrella policy (PUP) provides an extra layer of protection to reduce the risk of loss to your clients and their families. A PUP is essential to protect valuable assets.

For example, suppose a client’s child causes an auto accident that injures several people in both vehicles. If their auto insurance comes with a $250,000 per person limit, the claim will likely exceed the limits of this policy. A PUP could cover the additional costs up to the limit of the umbrella policy. Without an umbrella policy, your client would be forced to pay these costs out-of-pocket.

What Is the Difference Between Umbrella Insurance and TRU Umbrella Insurance?

A standard umbrella insurance policy extends coverage limits and covers extra belongings like boats, but a TRU Umbrella policy from Prime Insurance Company goes further by filling the gaps and exclusions your client needs. If a standard umbrella policy falls short of meeting your client’s coverage needs, a TRU Umbrella policy may be the better option. Unlike traditional umbrella policies, we don’t have any gaps in our TRU Umbrella policy. A client could still be exposed even with an umbrella policy from another company, but a TRU Umbrella policy with Prime will cover all the gaps.

What Does an Umbrella Policy Cover?

Personal and commercial umbrella insurance can cover your client. Commercial umbrella insurance can offer extra liability coverage on top of business and property policies to protect a client’s business and assets. Personal umbrella insurance can cover individuals and members of their households against various risks and costs. Umbrella policies cover:

  • Defamation claims
  • Landlord liability claims
  • False imprisonment claims
  • Damage to another person’s property
  • Lawsuits that involve personal injury to others

For example, say a guest in your client’s home is injured after falling down a staircase and sues your client for their medical bills. These costs could exceed the liability limit of your client’s homeowners insurance, which is where an umbrella policy would come in.

3 Benefits of Providing True Umbrella Policies

3 Benefits of Providing TRU Umbrella Policies

Primary insurance provides the minimum level of protection, but your clients may need greater coverage to avoid huge financial risks and losses. For clients exposed to a greater level of risk than the average customer, you may want to recommend a TRU Umbrella policy. The following benefits may convince your client that this type of coverage is right for them:

1. Fills in Umbrella Insurance Gaps

When a standard primary insurance policy doesn’t offer adequate coverage, umbrella insurance can fill in the gaps. This can be especially helpful for clients who engage in riskier activities or business than the average client. TRU Umbrella liability insurance can provide coverage for your clients against lawsuits that could cause significant financial damage without adequate coverage. The costs of these lawsuits often exceed the limits of primary insurance.

If your client faces the potential for significant financial risks, they can benefit from TRU Umbrella insurance that fills gaps in their primary insurance. For clients who have insurance policies with many exclusions, show them how umbrella insurance can overcome those exclusions.

2. Protects Your Clients Better

A TRU Umbrella policy better protects your clients. Many clients underestimate the potential expense of a liability lawsuit and skip umbrella insurance, believing the risk is not significant enough to justify the additional cost. Many estimate the maximum amount of damages they’d need to pay for causing a serious injury in a car accident or causing property damage would be only a few million dollars. However, the costs could be higher. Your clients deserve the protection they need.

3. Helps You Expand Your Business

If you are an insurance agent or insurance broker who wants to expand your business, you can present TRU Umbrella insurance from Prime to your clients as another coverage option. When you partner with us, you can expect the following support:

  • Partnership approach: Partnering with Prime means partnering with a reliable insurance company that works closely with you throughout the underwriting process and beyond. The personal connection we offer is one that many of our competitors don’t offer.
  • Opportunities for profit sharing: We aim to maintain a lasting relationship with insurance producers through an innovative profit-sharing program.
  • Lack of limits or restrictions: At Prime, we don’t require you to reach a volume or premium threshold when writing coverage. Instead, you can generate as few or as many policies as needed.

Highlights of True Umbrella Insurance Policy

Highlights of TRU Umbrella Insurance Policy

With standard policies, some claims are excluded, exceed the policy limit, or fall outside the policy’s limitations. Insurance is crucial for protecting your clients, but homeowners insurance, business insurance, and auto insurance policies don’t always offer the protection your clients require. When a claim exceeds policy limits or isn’t covered, your client is liable for paying uncovered costs out of their own pocket, which could be thousands of dollars. Though standard umbrella policies can extend coverage limits for some circumstances, they may still fall short of addressing key areas where clients need coverage.

At Prime, we aim to provide coverage solutions that insurance producers can’t find anywhere else. Our TRU Umbrella insurance coverage stands apart because we want to help insureds leverage the market to their advantage. We write the exclusions, gaps, and limitations as needed. Unlike other carriers, our TRU Umbrella coverage schedules perils, operations, and activities. We identify gray areas and gaps in play, work, and home activities and cover them with Prime TRU Umbrella coverage. Gaps and gray areas that may be covered include:

  • Animals
  • Watercraft
  • Trampolines
  • Self-defense
  • Recreation vehicles
  • Pools and diving boards
  • High-value collections and items
  • Business operations and vehicles

TRU Umbrella is custom-made to fit a client’s unique needs, providing protection that other policies don’t offer for accidents, incidents, and lawsuits. Highlights of our TRU Umbrella insurance coverage include:

  • Adverse claims history
  • Coverage for emerging risks
  • Issues with DUIs may still be covered
  • Maintain existing homeowners or auto insurer
  • Coverage available for underinsured and uninsured motorists
  • New drivers are accepted, meaning there are no age restrictions on drivers
  • Coverage for high-net-worth individuals, politicians, celebrities, sports figures, and high-end coastal residents

Offer better than “good enough” coverage with enhanced protection from Prime TRU Umbrella. Our all-in-one approach enables coverage of more insurance needs in a single policy, and more coverage can be managed in one place.

Who Can Benefit From TRU Umbrella Coverage?

TRU Umbrella coverage can benefit anyone, including homeowners, business owners, and vehicle owners. Here are some examples of who can benefit from this type of coverage.

  • High-net-worth individuals with significant assets and savings: Those with the most also have the most to lose. High-net-worth individuals may want to protect their assets and savings with extra coverage via a TRU Umbrella policy.
  • Business owners: Business owners may be at risk of being sued for various liability issues, such as slander, harassment claims, or workplace accidents. Even if your business clients have excellent business insurance coverage, a TRU Umbrella policy can fill gaps in insurance coverage.
  • Landlords: Landlords commonly show up to court after facing tenant claims. A tenant may sue a landlord after falling on an icy walkway or experiencing property damage from a building’s faulty wiring that caused a fire. With TRU Umbrella policies, landlords can ensure they are fully protected.
  • Investment property owners: Those who own multiple properties are at greater liability risk. Someone could be injured on your client’s land or in one of their properties, which could lead to a negligence lawsuit. A TRU Umbrella policy can offer property owners the protection they need.
  • Owners of certain dog breeds: Clients who own certain dog breeds may need coverage beyond their homeowners insurance. Some dog breeds are considered high risk for injuries and significant payouts. Breeds like pit bulls, Rottweilers, and Dobermans may not be covered by a homeowners insurance provider, so these pet owners should seek TRU Umbrella policies.
  • Owners of attractive nuisances: Clients who own attractive nuisances like trampolines or pools could be at greater risk of being sued. For example, if a child is attracted to a client’s trampoline and suffers a serious injury, the child’s parents could sue the homeowner. Some insurance providers limit or refuse coverage for attractive nuisances, which is where TRU Umbrella insurance can fill this coverage gap.
  • Parents with inexperienced drivers in their home: If you have a client with an inexperienced teenage driver in their household, they may be worried about their amount of auto insurance coverage. Luckily, TRU Umbrella policies can pay out beyond an auto policy’s liability limits.

Get a Quote for True Umbrella Insurance Today

Get a Quote for TRU Umbrella Insurance Today

For your clients, few things are as concerning as not having adequate insurance coverage. To ensure your clients have the coverage they need, partner with Prime Insurance Company to provide TRU Umbrella insurance policies and start saying yes to specialty risk business opportunities.

At Prime, we offer a partnership approach to insurance producers like you. By working together, we can help you increase your value as an insurance producer. We have been in business for more than 40 years, and we are rated “A” (Excellent) by AM Best*, so we are a reliable, financially stable insurance company you can trust. Our surplus and excess liability insurance enables you to offer coverage to those who would otherwise go underinsured. Contact us at Prime for more information about providing TRU Umbrella insurance coverage or get a quote now.

*For the latest ratings, access www.ambest.com.

Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company

rick j lindsey president and ceo of prime insurance company - headshot with white backgroundRick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Read more…

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