Spring is in the air! The days are growing longer, new green growth is emerging, and we can finally start shedding some of our winter layers. I can’t wait to get outside and take advantage of all the fun activities that warm weather brings, and I can bet I’m not alone in that.
During the spring and summer, clients are more likely to engage in activities that increase their liability exposures. They’re spending more time outdoors, hosting gatherings, and enjoying various recreational activities.
Below are just a few examples of why this is a critical time of year for agents to educate their clients about the importance of a Personal Umbrella Policy (PUP). Accidents can happen at any time, and a PUP can provide an extra layer of financial protection when the unexpected happens.
Celebrations
Graduation season is upon us, which means it’s time to party! Families and friends will be hosting and attending graduation parties to celebrate another round of grads. With large groups of people and excited teens, the likelihood of accidents increases. This can range from slips, trips, and falls to unintentional injuries caused by pets.
There are also many holidays that take place during the spring and summer months. Memorial Day and the Fourth of July are big deals in my neighborhood. Imagine a firework taking an unintended path and striking one of your client’s guests. Your client could be on the hook for an ambulance ride, medical bills, and maybe even a lawsuit.
Backyard Hazards
Swimming pools are great for keeping your clients and their friends cool during the hot weather. They’re also a significant liability exposure. Children can be seriously injured or worse if left unattended. Additionally, low water levels can be dangerous for guests who don’t realize there’s not enough depth to safely dive into the water. No one wants or expects these types of accidents to happen, but as a former agent who has had to help report these types of claims, I can tell you first-hand that they do.
Summer Toys
Clients are eager to get outside and enjoy their boats, ATVs, and other recreational vehicles. Accidents on the water can happen fast and are more common than you may think. The Coast Guard reported that in 2023, there were 3,844 recreational boating accidents, which resulted in 564 deaths and $63 million in property damage. An ATV collision can result from something as simple as misjudging a curve in the trail.
Consider a PUP
It’s not a matter of if, but when. Clients are exposed to liability risks every day simply by driving a vehicle or hosting a party. Accidents can happen at any time and can have devastating results. These are just a few reasons why agents should consider offering an umbrella to their clients:
- Financial Protection – Large losses can exhaust your client’s underlying liability limits, putting their home, cars, and other assets in danger.
- Lawsuits – Our ever-increasingly litigious society and the trend of Third-Party Litigation Funding is resulting in an increase in lawsuit activity, not to mention it can drive up loss amounts.
- E&O – If a client experiences a loss that exceeds their underlying liability limits and their agent never offered them a PUP, they may file an Errors and Omissions claim against the agent.
- Building Trust – Clients rely on their agents to help them secure insurance protection against their unique exposures. Letting them know umbrella coverage is available is a way to show them that you have their best interests at heart.
RLI Can Help
RLI offers limits up to $5 million in their Personal Umbrella Policy program, with an option to add $1 million excess UM/UIM coverage. Their PUP is a standalone policy and can be written over any underlying carriers, but keep in mind that if it’s excluded on the underlying, it’s excluded by RLI. Quoting is easy with a self-underwriting application. Plus, RLI is an A+ rated carrier, which allows you to feel confident about offering an RLI policy to your clients.
To learn more about RLI’s Personal Umbrella Policy, click here. And be sure to attend our upcoming webinar with featured speaker Jamey Alwood of RLI Corp, where we’ll explore the benefits of an umbrella policy using real-life scenarios.
Ready to start writing Personal Umbrella Policies with RLI?
Contact Cristie Tillery at cristie@ohioinsuranceagents.com to get started!
About the Author:
Cristie is a licensed Property, Casualty, Life, and Health insurance agent. Before joining the OIA, she worked at an independent agency in southern Ohio for over eight years. Her favorite thing about the insurance industry are all of the wonderful people she gets an opportunity to meet and now she enjoys the opportunity to help the agents she used to work alongside.
