Umbrella insurance- date of coverage

[sixeyes]

What is the name of your state? Michigan

Does umbrella insurance typically cover incidents which occur prior to the date of coverage if the lawsuit is brought after coverage?

My business was sued for minor injuries sustained in a car accident involving a company vehicle (the injured party was not driving the company car). The accident occurred 3 weeks before our firm purchased umbrella coverage, but the lawsuit was not filed by the other party until nearly a year after the coverage was in place.

Thank you for your time.

 

[las365]

If you have found an insurance company that will cover an accident that happened when you didn't have a policy with them, please post it's name.

No, they won't cover the accident. It matters when the loss happened, not when the lawsuit was filed.

 

[moburkes]

Some business policies will - it is called a "claims made' policy. However, no such policy exists for personal lines.

I hope you didn't buy that policy without telling them there was a chance of a lawsuit.

 

[las365]

I stand corrected, Mo! I imagine that costs a tad extra, eh?

 

[moburkes]

I stand corrected, Mo! I imagine that costs a tad extra, eh?

Oh yeahhhhhhhhhhh, a claims made policy is expensive. Also, for business insurance, at the end of the year, the insurance company audits your financials, and adjusts the premiums on your insurance policy based on your earnings!

No umbrella policy that I am aware of, is a claims made policy.