Mercury Insurance Expands Umbrella Coverage in Florida Amid Rising Bodily Injury Claims
Mercury Insurance has introduced an enhanced personal umbrella insurance policy in Florida to address the rising costs of bodily injury liability claims which have increased significantly since the pandemic. This new product offers additional liability coverage starting at just over $1 per day, aiming to protect policyholders' personal wealth from lawsuits that exceed the limits of standard auto and home insurance policies. Florida, a state experiencing elevated injury claim payouts, marks Mercury's seventh state to offer this expanded umbrella insured product, following launches in California, Texas, Oklahoma, Illinois, Arizona, and Georgia.
The escalating trends in bodily injury claims, particularly those that surpass underlying policy limits, are prompting insurers like Mercury to innovate their umbrella offerings. These policies serve as an important layer of protection for insureds, covering liabilities in events such as multi-vehicle crashes, dog bites, or injuries occurring on private property. The updated Mercury umbrella policy is designed to be customizable, allowing consumers to tailor their coverage according to evolving risk profiles and asset growth.
A notable case highlighted involves a long-time Mercury insured whose auto liability cover of $25,000 proved insufficient when involved in an accident with severe injury to the other party. Without umbrella coverage, the insured faced out-of-pocket expenses and wage garnishments to satisfy the legal settlement. This case underscores the financial risks owners of traditional insurance policies might face without adequate supplemental liability protection.
Mercury Insurance is a multi-line carrier operating predominantly in 11 states, including Florida, offering personal auto, homeowners, renters, and commercial insurance through independent agents. The company is rated "A" by A.M. Best and recognized for competitive pricing combined with strong customer service. By expanding its umbrella insurance offerings, Mercury aims to provide Floridians and consumers in other markets with robust tools to address legal liability risks and protect their assets from increasingly prevalent and costly bodily injury claims.
The rise in bodily injury claim severity and frequency highlights the need for insurance professionals to guide policyholders in understanding the gaps in conventional policies and the value of umbrella coverage. Mercury's new offering reflects the broader market shift towards enhanced liability solutions as an industry response to evolving litigation trends and regulatory landscapes affecting personal lines insurance in the U.S.