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June 2023

HELP POLICYHOLDERS UNDERSTAND UMBRELLA POLICY PROTECTION

How can you help policyholders understand the importance of an umbrella policy? Use these tips to discuss the extra layer of protection provided by an umbrella policy.

Describe what umbrella insurance covers

Umbrella insurance provides an extra layer of protection. With umbrella insurance, your most preferred policyholders can protect their families from potentially devastating financial repercussions, including:

  • Bodily injury
  • Property damage
  • Personal injury
  • Defense coverage

Explain who needs it

Everyone can benefit from umbrella protection, and when your most preferred customers have assets to protect, the extra coverage can help them avoid potentially devastating losses. When a customer answers ‘yes’ to one or more of the below questions, they need the protection of an umbrella policy.

  • Do they own a home or homes?
  • Do they own rental units?
  • Do they own one or more cars?
  • Do they own miscellaneous vehicles such as a motorcycle, an all-terrain vehicle, a camper or a trailer?
  • Do they have financial assets to protect?
  • Do they have young drivers at home?

Best practices to sell umbrella coverage

  • Customers insuring their primary home, car and any other insurable personal exposures, as well as higher financial assets, should be offered an umbrella quote when they meet Encova’s eligibility guidelines.
  • If a policyholder declines the umbrella policy, have them sign and notate the account to save yourself from an errors and omissions issue down the road. Signing a declination letter may incentivize the policyholder to reconsider the importance of an umbrella policy.
  • Paint a picture of why an umbrella policy is important — explain the benefits and ask probing questions. Share an example from your industry experience.
  • If a policyholder declines the initial presentation of the umbrella policy, follow up again when the auto and home policies are renewing.
  • Bundle discounts — clients will see additional savings on their supporting policies when bundled together.
  • If a client only has a commercial auto policy with Encova and wants a personal umbrella policy, offer a named non-owned policy to fill this void.

Requirements for an Encova umbrella policy

  • Encova underlying auto and home policies (see complete eligibility guidelines in Encova Edge)
  • Encova requires auto policies to have at least $250,000/$500,000 ($300,000 CSL) of bodily injury coverage to qualify.
  • Home liability requires a minimum limit of $300,000 to qualify.
  • In the event the policyholder does not own a private passenger auto, an Encova named non-owned policy is required.

Contact your personal lines territory manager with questions about umbrella policies.