In today’s increasingly complex world, financial risks can escalate rapidly, and lawsuits can easily spiral into multi-million-dollar cases. This is where excess liability insurance comes into play, offering a crucial layer of protection to safeguard your assets from an ever-increasing range of exposures.
Personal excess liability insurance acts as an additional shield, extending the coverage beyond your primary homeowner or auto insurance policies. This extra layer of protection is essential when the liability limits of your standard policies fall short, leaving you vulnerable to unexpected costs arising from accidents or legal actions.
COMMON SCENARIOS
Onsite injury. You hire a local contractor who sustains a severe injury while working on your property, such as falling from a ladder or getting electrocuted. You could be liable for their medical expenses, lost wages, and pain and suffering claims, potentially amounting to over $1 million.
Dog bites. Your generally gentle dog bites a child in the face after the toddler unexpectedly approaches to pet it. The resulting injury leads to permanent disfigurement, and the child’s parents sue you for millions.
Event liability. You host a holiday party where your hired bartender is harassed by a guest. As the host, you could be held liable for the actions of your attendees and might be responsible for funding your own legal defense costs.
Condo fire. Imagine a fire breaks out in your condo and spreads to a dozen other units, causing extensive fire, smoke, and water damage. While your insurance covers your own dwelling and contents, are you covered for the damages incurred by others? In such a scenario, you could be held accountable for damages exceeding $20 million.
BENEFITS TO YOU
With the increasing frequency of large verdicts in lawsuits, individuals with significant assets are often targeted for claims worth millions. Excess liability insurance offers several key benefits such as:
Courtroom protection. Covers the defense costs of lawsuits, even if the claims are baseless or fraudulent. It also provides legal counsel and covers all related expenses.
Driving protection. Ensures peace of mind if you’re involved in an accident with an uninsured or underinsured driver.
Property protection. Safeguards your finances if you’re found liable for injuries occurring on the grounds of primary or secondary residences.
Reputation protection. It shields your reputation from the consequences of lawsuits involving libel, slander, or negligence, including those arising from social media and digital assets.
Global protection. Whether at home or abroad, you can rest more easily knowing you’re covered wherever life takes you.
Depending on how you structure your policy, coverage may extend to yourself, spouse, domestic partner, relatives, and individuals under 25 in your care who all reside in the same household. The coverage also protects anyone using a covered vehicle or watercraft with your permission.
DON’T LEAVE YOUR FINANCIAL SECURITY TO CHANCE
In a world full of uncertainties, don’t risk having gaps in your coverage. Take control of your financial security by fortifying your defenses with excess liability insurance and protect what matters most.
Learn more about how Lockton can help you better protect your luxury lifestyle by visiting Private Risk Solutions (opens a new window) today!
The information provided in this article is for educational purposes only and should not be considered professional advice. Please consult with a Lockton representative for information regarding specific insurance products and services.