MMC Benefits Handbook
What does the Personal Excess Liability Insurance cover?
The benefit will pay all sums (more fully defined by the term net loss) that the employee becomes legally obligated to pay for personal injury or property damage in excess of the required underlying limit or in the excess of the retained limit, if applicable.
The benefit applies to personal injury and property damage worldwide if the personal injury or property damage occurs when the policy is in effect.
Other exclusions apply.
What is the retained limit?
Besides protecting you against liability claims which exceed the required underlying limits of your primary policies, this benefit also covers some liability exposures which may be excluded by your underlying policies. These exposures have no required underlying limits and are covered from first dollar of loss, unless otherwise stated in your policy.
I already have Personal Excess Liability coverage. Is my Group Personal Excess Liability Insurance coverage offered through Mercer Voluntary Benefits (provided by Mercer Health & Benefits Administration) on top of that coverage?
Generally, yes. This coverage is excess over any other valid or collectable liability coverage. The Personal Excess Liability Insurance is designed to be excess insurance, but that determination may be governed by the provisions in your other excess insurance contract. You should review your other insurance provisions to confirm what their requirements are.
My spouse has his/her own business. Is my spouse covered under Personal Excess Liability Insurance while operating that business?
We do not cover any damages arising out of a covered person's business pursuits, investment or other for-profit activities, for the account of a covered person or others, or business property except on a follow form basis.
We cover damages arising out of volunteer work for an organized charitable, religious or community group, an incidental business away from home, incidental business at home, incidental business property, or residence premises conditional business liability unless another exclusion applies. We also cover damages arising out of your or a family member's ownership, maintenance, or use of a private passenger motor vehicle in business activities other than selling, repairing, servicing, storing, parking, testing, or delivering motorized land vehicles.
Unless stated otherwise in your Coverage Summary:
- "Incidental business at home" is a business activity, other than farming, conducted on your residence premises which must:
- not yield gross revenues in excess of $15,000, in any year, except for the business activity of managing one's own personal investments;
- have no employees subject to worker's compensation or other similar disability laws;
- conform to local, state, and federal laws.
- "Incidental business property" is limited to the rental or holding for rental, to be used as a residence, of a condominium or cooperative unit owned by you or a family member, an apartment unit rented to you or a family member, a one or two family dwelling owned by you or a family member, or a three or four family dwelling owned and occupied by you or a family member. We provide this coverage only for premises covered under the Required Primary Underlying Insurance unless the rental or holding for rental is for:
- a residence of yours or a family member's that is occasionally rented and that is used exclusively as a residence; or
- part of a residence of yours or a family member's by one or two roomers or boarders; or
- part of a residence of yours or a family member's as an office, school, studio, or private garage.
- "Residence premises conditional business liability" is limited to business or professional activities when legally conducted by you or a family member at your residence. We provide coverage only for personal injury or property damage arising out of the physical condition of that residence if:
- you or a family member do not have any employees involved in your business or professional activities who are subject to workers' compensation or other similar disability laws; or, if you or a family member are a doctor or dentist, you do not have more than two employees subject to such laws;
- you or a family member do not earn annual gross revenues in excess of $5,000, if you or a family member are a home day care provider.
We do not cover damages or consequences resulting from business or professional care or services performed or not performed.
For further detail, or for information regarding incidental farming coverage, call +1 800 225 2265, Monday through Friday, 8 a.m. to 9 p.m. Eastern time and Saturday 8 a.m. to 2 p.m. Eastern time.
My spouse is a director of a non-profit organization. Is my spouse covered by Personal Excess Liability Insurance while acting in his/her director capacity?
Yes, if any insured employee or spouse does not receive any pay. However, coverage is only provided based upon the insuring agreements of the policy. It is suggested that anyone serving as an officer or director obtain or be covered by non-profit directors and officers liability.