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A Good Time to Check Your Umbrella Coverage
By David Miller
It’s finally summer in Chicago. We welcome the summer, with its vacations, swimming pools, boats and other warm weather fun. However, some of this fun may come with an increased liability risk. Yes, the “insurance guy” is bringing a dark cloud to your summer picnic, but this brief discussion could help avert problems in the future.
It is a sad fact that affluent people are more likely to be sued, simply because they have more money. You already know that, and you probably have taken steps to protect yourself, such as buying an excess liability policy.
But this is a good time to check whether the limits of your umbrella policy are high enough, and to consider the insurance implications of summer activities. They may be increasing your exposure to a claim or leaving you with no liability coverage.
For example, do you have a swimming pool or a backyard trampoline? If the neighbors congregate there, you are at risk. Even if you don’t give permission, you could be liable if someone is hurt in your pool or on your trampoline.
In insurance language, a swimming pool or trampoline is known as an “attractive nuisance” because children are drawn to them like iron filings to a magnet. Please call our office if you are planning to install a pool or purchase a trampoline, as your insurance company may require enhanced safety precautions in order to continue providing liability coverage.
This applies to rental cars, too. Your auto insurance policy extends coverage to rental cars, but only if you have the owner’s permission to drive the vehicle. If you let someone else drive the rental car and they are not listed as a driver on the rental agreement, you do not have “permission” and a claim could be denied.
Do you coach a youth sport? Increasingly, youth sports organizations are requiring that their coaches have umbrella coverage. But even if your organization does not, it is a good idea, especially if you ever drive kids to or from games or practices.
At The Bensman Group, we want to make sure your insurance needs are taken care of so that you can enjoy your life. If you would like to discuss your umbrella coverage, or any other aspect of your insurance program, contact me or any member of The Bensman Group team, at 847-572-0800 or firstname.lastname@example.org.