A real-life scenario involving automobile liability.
Incident: The insured was driving on a two-lane road when he struck a pedestrian walking home from work. The pedestrian suffered serious head trauma. The insured was not speeding, there was no alcohol involved and cell phone records show that no phone was in use at the time of this accident.
Outcome: paid the $2,000,000 Personal Umbrella policy limit after the insured's underlying auto limit of $500,000 was exhausted.
A real-life scenario involving an impaired driver.
Incident: The insured was driving a vehicle when it was struck in the rear at high speed by an uninsured driver who was intoxicated. The insured was airlifted from the accident scene to a hospital. He sustained spinal injuries and other complications as a result of the accident.
Outcome: Because the Personal Umbrella Policy included coverage for Excess Uninsured/Underinsured Motorists with a policy limit of $1,000,000, the insured was paid the full $1,000,000 for an accident that was not his fault.
A real-life scenario involving a boat accident.
Incident: The insured was operating a ski boat on a lake. As the boat turned, an inner tube with rope tied to it blew out of the boat. The rope caught the leg of the passenger and launched him out of the boat and onto the dock. The passenger sustained substantial injuries and was totally disabled for six weeks, leading to a business income loss.
Outcome: The primary insurance company tendered its full policy limit, which was $500,000 short of the total claim amount. The Personal Umbrella Policy covered the remaining amount. Without the personal umbrella policy, the insured would have had to pay the $500,000 out of pocket.