Higher liability limits
Apr 19, 2016
How do you protect yourself from the threat of multimillion-dollar lawsuits?
Financial advisors often recommend that your personal excess liability (umbrella) policy limits be equivalent to your net worth. However, it’s important to consider all the risk factors that could increase your liability exposure. We live in a litigious society. If your net worth is over $1 million, you could be at greater exposure to being targeted by frivolous lawsuits seeking higher payments based on the perception you have a lot of wealth. An unfavorable judgment could exceed your savings and put future earnings and other assets at risk.
How you may be at risk
- Automobile accident: Driving on a major urban road in heavy traffic on a rainy night, there was a minor accident. The two motorists were between their cars exchanging information when your teenage child was texting while driving and hit one of the cars. Medical injuries, loss of wages, pain and suffering resulted in an $8 million settlement.
- Entertaining at home: You hosted a neighborhood party. A dozen people were enjoying the view from your deck when it collapsed. Many had severe injuries and are suing you for lost wages and medical expenses.
- Social media review: You dined at a local restaurant for the first time. You felt the service and food wasn’t adequate and wanted to share your experience so others may avoid the same experience. You posted a review online for the restaurant. The restaurant sued you for loss of business and damaged reputation.
- Secondary home: You hired contractors to winterize your vacation home in the mountains. While they were working, the roof collapsed due to heavy snow. One worker died of his injuries. His family sued you for $10 million.
Nationwide Private Client homeowners and personal excess liability policies are designed to help protect you from events that could damage your financial position. Would the current liability limits on your insurance policy cover you in these situations?
Additional exposures that are important to consider when determining your liability limit include whether or not you own rental properties, employ domestic staff, serve on a nonprofit board of directors, have a swimming pool or spa at your home, possess firearms, have pets or own watercraft.
How Nationwide Private Client responds
You have the option to expand your liability coverage up to $25 million with our personal excess liability policy.
Our personal excess liability policy with protection endorsement also includes:
- Up to $250,000 of expanded defense coverage for the reasonable expenses incurred to have your own attorney consult on a claim we defend.1
- Up to $250,000 of crisis management coverage for reasonable expenses from the public relations or crisis management firm of your choice to help mitigate potential damages or injury to your reputation caused by a covered occurrence or wrongful employment act.
- Up to $25,000 of employment event fund coverage for the reasonable expenses incurred by engaging an employment event management firm to minimize potential loss as a result of an employment event.2
Liability situations are stressful. Should you be faced with a covered liability loss, you can have confidence that Nationwide Private Client will fulfill our duty to defend you.
Why it’s important for you
Today, there are more liability exposures than ever. Many people don’t realize how affordable excess liability insurance can be. The premium you may save by increasing your home and automobile deductibles could more than pay for added or increased excess liability limits. Talk with your insurance agent today to determine the right amount of liability protection for your unique needs.
Nationwide Private Client offers these added benefits:
- Claims: Exceptional claims handling provided by Nationwide Private Client.
- Financial strength: Nationwide, a Fortune 1003 company, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A1 by Moody’s and A+ by both A.M. Best and Standard & Poor’s.4
- Charitable giving: At Nationwide, we strongly believe in being good corporate citizens where we work and live. Since 2000, the Nationwide Foundation has committed more than $355 million to charitable organizations across the U.S. Nationwide Private Client continues to demonstrate this core value through its Partners in Giving program, helping numerous lives each year.
Why Nationwide Private Client
Nationwide Private Client is dedicated to helping protect the assets and reputations of our clients. Our highly personalized insurance products, services and concierge-style claim management are thoughtfully designed to meet the distinctive needs of affluent individuals and families. We are committed to providing you a superior experience whenever you need assistance.
Download: Higher liability limits
1Contact your agent for policy limitations.
2Per policy period limit.
3Based on revenue, Fortune (June 2015).
4Ratings affirmed 9/12/13 by Moody’s, 4/2/14 by A.M. Best, and 5/13/14 by Standard & Poor’s.