Umbrella Insurance – Common Issues
The most common umbrella insurance problems involve the following issues:
- Whether the underlying claim is or is not covered under the umbrella’s coverage provisions.
- Whether the Umbrella insurance limits are too low to protect the insureds’ assets against a lawsuit or judgment.
- If there is a gap in coverage, who is responsible for it: The underlying agent; the underlying insurer; the Umbrella agent or the Umbrella insurer?
- Whether the Umbrella carrier has an independent duty to defend the insured(s) and/or settle the claim.
- Whether the Umbrella carrier has an independent duty to attempt to settle the claim against the insured(s).