Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Don’t Scare Them – Help Them Understand | Umbrella Insurance

Published on June 30, 2015

Each day brings new possibilities for unfortunate accidents and liability claims. Many people don’t recognize their loss exposures, which can unfortunately result in catastrophic loss and significant financial burden. The following claims scenarios are factual claims that can be used to highlight the real possibility of loss. You can remind your insurance customers and prospective customers the reality of what an Umbrella Insurance policy could do for them in times like these.

Our goal is never to scare people. We know by our very being human that bad things can and do happen to people across all walks of life and socioeconomic standings. What we at Abram Interstate want to help you do is to better inform your customers about the ways that they could be covered well by our wholesale insurance products, like Umbrella insurance. Help your insurance customers understand the risks that they could be exposed to, and help them understand how the solution of umbrella insurance policies can cover them in the event of something unfortunate like these instances below.

Of course we hope that nothing like this happens. If it does though, we want to have done our job as your general managing agency, and we want you to have done your job as their insurance agent to make sure they’re able to get back to life as normal with as little hiccups as possible.

Personal Umbrella Insurance is just one of those things that makes sense to have in place. Let these examples speak to why:

Internet Blogger
The insured’s daughter hated math class as well as the teacher.  The daughter made several “disparaging” and false remarks about her teacher online. The teacher sued the parents for personal injury and $750,000 was paid.

Faulty Furnace
The insured’s tenant claims she became ill from carbon monoxide poisoning resulting from a faulty furnace.  The tenant claimed permanent brain damage and demanded $750,000.

Coaching Circumstances
A teenager, who was destined for greatness as a softball player, filed a $700,000 lawsuit against her former coach, alleging his “incorrect” teaching style ruined her chances for an athletic scholarship.

Falling Concrete
A hillside on the insured’s property was covered with concrete to prevent erosion.  The concrete had been installed before the insured purchased the property. Approximately 5 feet of the concrete fell to the neighboring property knocking the claimant’s home from its foundation. The resulting claim was settled for $970,000.

Paintball Misfortune
The insured permitted several of her children and their friends to play paintball in her large back yard.  The children were experienced and advised of all the safety rules including the use of headgear at all times.  A participant removed her headgear as she was leaving the field in order to better hear someone calling her name.  The minor claimant was hit in the eye resulting in a $475,000 settlement.

Beach Explosion
The insureds hosted a beach party for their daughter.  One of the attendees found what was believed to be an empty and discarded propane tank.  The tank was thrown into a beach bonfire and subsequently exploded resulting in severe injuries to several guests.  A $20,000,000 claim was filed alleging the insured failed to properly supervise the party.

Personal Umbrella Insurance Product Highlight:

Preferred Applicants:

  • Operators between 23 and 75 years old
  • Limited exposure units (home, autos, RVs and watercraft)
  • Driving discounts apply
  • Zero accidents/DUIs; no more than 2 convictions
  • Limits up to $10 million on any quote
  • Admitted in 45 states

Standard Applicants:

  • Unlimited number of autos, RVs and watercraft up to 75’
  • Up to fifteen 1-4 family residential locations
  • Operator ages can range from age 23 through age 89
  • Six convictions in a household (3 years)
  • Three fault accidents in a household (3 years)
  • Limits up to $5 million on any quote
  • Admitted in 45 states

High Risk Applicants:

  • $1 million for any account with an operator age 90 or over for auto and watercraft
  • Ten convictions in a household (3 years)
  • Five fault accidents in a household (3 years)
  • Any DUI in 5 years (zero if under age 23 or over age 89)
  • Limits up to $5 million
  • Now admitted in most states
  • Any major category conviction in a household (3 years)



Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for personal lines insurance and commercial lines insurance in California and surrounding areas.

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