Personal umbrella insurance is a form of personal insurance, but it might better be called a type of family insurance. For, most personal umbrella policies offered by insurers in Massachusetts provide coverage for both the policyholder and their immediate family members. If you have a personal umbrella policy, here are some examples of incidents that family members might be in and your policy may cover. (Exact coverages can vary. Whether your policy would cover these particular incidents depends on its terms, conditions and limits.)

Is My Entire Family Covered by My Personal Umbrella Policy? Check These Examples –

Your Spouse Chaperones a Trip That a Child’s Injured On

If your spouse volunteered to chaperone a trip (perhaps for your kid’s band or sports team), they might be held responsible for anything that goes wrong on the trip. Should a child on the trip be injured, your spouse might be sued by the child’s parents. Such lawsuits are uncommon, but they can be extremely expensive.

For example, one parent chaperoned a cheerleading trip to Hawaii. On the trip, a cheerleader died of alcohol poisoning. The chaperone was found partially responsible for the death, and she was ordered to pay the deceased child’s parents and estate $690,000.

A personal umbrella policy might provide both you and your spouse with coverage for such potential incidents, letting either of you volunteer to chaperone a trip without worrying too much about the potential financial risks you’re assuming in doing so.

Your Teenage Child Causes a Multi-Vehicle Car Accident

If, while on one of Massachusetts’ highways, your teenager causes a multi-vehicle car accident, the resulting financial liability could be devastating.

A single fender-bender likely won’t exhaust your auto insurance policy’s limits, but the costs of an accident involving several cars might exceed the coverage your auto policy provides. The property damage alone could be tens of thousands of dollars. If there are serious or chronic injuries, your teenager could be liable for hundreds of thousands, even possibly millions, of dollars in medical bills.

Just as auto insurance policies frequently cover all drivers in a household, personal umbrella insurance also often covers all household members who can legally drive. With the right auto and personal umbrella coverage in place, your family may have enough coverage for even a large settlement resulting from a major accident. 

Your Child Makes Disparaging Remarks About a Teacher on Social Media

If your child makes a disparaging and unsubstantiated claim about a teacher on social media, the teacher might be able to sue for libel. Depending on the effects that the claims had, the legal fees and settlement associated with such a suit could amount to a large sum. For instance, if the teacher was fired over the claims your child made, they might seek an extremely large settlement in court.

Personal umbrella insurance often provides coverage for slander and libel, and most policies extend coverage to online statements. Having personal umbrella insurance may help protect your family from unwarranted remarks that kids make on social media, which they sometimes have a penchant for doing.

Your Dog Bites a Guest

If your dog becomes defensive while a guest is visiting and attacks them, your guest might ask you to pay for any medical bills they have as a result of the attack. Just a small bite could cost tens of thousand of dollars in medical care, and a major attack could be even more.

Some homeowners insurance policies provide liability coverage for dog bites, but they typically restrict what breeds are covered. If your homeowners policy excludes your dog’s breed, or if the costs of the incident exceed your homeowners policy’s limits, personal liability insurance may help cover any financial responsibility you have for your dog’s attack.

Talk with a Massachusetts Agent About Your Personal Umbrella Policy

Many personal umbrella insurance policies cover incidents like these. As mentioned, though, whether your personal umbrella policy would provide coverage in these scenarios depends on the policy’s particular terms, conditions and exclusions. To find out exactly what types of incidents your policy offers coverage for, contact your independent insurance agent in Massachusetts.