Personal Excess Liability Coverage
EACH YEAR, ON AVERAGE, 1 IN 2,000 PURE MEMBERS IS INVOLVED IN AN INCIDENT THAT CARRIES THE POTENTIAL TO EXPOSE THEIR LIFE SAVINGS, TANGIBLE ASSETS AND EVEN THEIR FUTURE EARNINGS.
While the events that spark a Personal Excess Liability lawsuit happen infrequently, the jury verdicts associated with these incidents—which can range from tragic automobile accidents to seemingly ordinary mishaps—can, in extreme cases, be financially devastating. Outside of the PURE membership, there have been verdicts and settlements ranging from $11,000,000 for injuries suffered by a contractor while working in the defendant’s home, $24,000,000 for injuries resulting from a slip and fall on the defendant’s property, and $46,000,000 for an at-fault auto accident that resulted in a fatality.
PRICING FOR HIGH LIMITS OF PERSONAL EXCESS LIABILITY COVERAGE
With so much at stake, it’s important to maintain adequate limits of Personal Excess Liability coverage in order to protect your financial future. Yet until recently, the insurance industry (PURE included) followed an illogical pricing structure that discouraged those needing limits greater than $10,000,000 from purchasing the appropriate amount, and those who did purchase higher limits were paying very high rates.
Under the old pricing structure, the cost of coverage increased dramatically for limits greater than $10,000,000. For example, it might cost $1,500 for the first $10,000,000 of coverage and cost four or five times that amount for the next $10,000,000 of coverage. This doesn’t make sense when you consider that the lower limits of coverage are far more likely to be paid in a claim than the higher limits.
Illustration represents pricing effect based on one member’s unique risk profile. Pricing may vary by policy.
PRICING THAT NO LONGER DISCOURAGES HIGHER LIMITS
We set out to fix this for our membership. In 2017, we introduced a new pricing structure for Personal Excess Liability coverage that is based on the unique risk factors of the individuals covered by the policy and more accurately reflects the likelihood of the limit being paid out in a claim. As a result, members who purchase limits above $10,000,000 will experience an average savings of 43 percent on their premium at renewal. With this new pricing, which will be live in almost all states by the end of 2018, we hope that more families needing higher limits of coverage will purchase the appropriate amounts.
Since implementing our new pricing, 30 percent of existing members who previously purchased limits above $10,000,000 have increased their limit. In addition, the number of new members selecting a limit above $10,000,000 has increased by 45 percent.
LIMITS OF MEMBERS WITH PERSONAL EXCESS LIABILITY COVERAGE
More than 85 percent of PURE members have Personal Excess Liability policies with PURE. Here is a look at the limits they have selected: