AAIS PERSONAL UMBRELLA OPTIONAL COVERAGE ENDORSEMENTS

(November 2023)

This section briefly discusses the common coverage options available for modifying the AAIS personal umbrella policy. Where applicable, you’ll find a reference to additional articles that discuss a particular endorsement in greater detail.

Note: These forms are listed in numerical order, followed by their form title.

PU 0031–Personal Umbrella Liability Coverage Schedule of Underlying Coverage

PU 0600–Change Endorsement

This form merely facilitates attachment of other forms and documents that action.

PU 0601–Expanded Definition of Insured

This form expands the definition of insured by changing the motorized vehicle or watercraft exception. The exception applies to all household members and not only those listed in the policy definition.

PU 0602–Personal Umbrella Liability Coverage Aggregate Limit

This form provides the option to increase the Personal Umbrella Liability Coverage Aggregate Limit so that it is more than just the Personal Umbrella Liability Coverage Limit.

PU 0603–Non-Owned Recreational Motor Vehicles

This form modifies the umbrella by adding a definition for “recreational motor vehicle” and amending two exclusions. The result is that excess coverage is available for loss involving the use of a non-owned recreational vehicle. Coverage is provided in excess over the scope of protection that exists in the underlying coverage. However, the exclusion of injury or damage related to no-fault, UM/UIM, automobile medical payments and medical expense and similar coverage still applies to non-owned RVs.

PU 0604–Auto Outside of the United States or Canada

This form extends the umbrella’s protection to the insured while using an auto outside of the U.S. and Canada. Coverage is excess over underlying coverage that must be in-force at the time of any accident and its limits must be equal to the limits of the umbrella’s underlying coverage. If a loss occurs in a location that bars the insurer from acting on behalf of the insured, it permits the insurer to reimburse the insured for claims and defense costs.

PU 0605–Notification of Cancellation or Nonrenewal

If the insurance company sends out a notice of cancellation or nonrenewal to the named insured, when this endorsement is attached, the party scheduled on this endorsement must receive the same notice.

PU 0630–Specified Business Activities

This form modifies the umbrella so that coverage is provided for the business activity described on the form. The form includes a description of the activity and the location where the activity takes place. Coverage under the umbrella is contingent on the described activity being protected by the applicable, underlying coverage.

PU 0631–Specified Farm Activities

This form modifies the umbrella so that certain coverage is provided for the farming operation described on the form. The form includes a description of the farm activity, the location where the activity takes place and whether the operation includes the application of pesticides and herbicides. The form adds a definition of farming while modifying the base umbrella policy’s definitions of “business” and “domestic employee.”

PU 0632–Specified Farm Activities–Expanded Exception to the Employers Liability Exclusion

This form modifies the umbrella to permit coverage for certain losses involving employees that are related to the farm activity described in the form’s schedule. The coverage provided is excess over the scope of coverage available under the applicable underlying coverage.

PU 0636–Business Activities

This form modifies the umbrella to provide liability coverage to certain business activities engaged in by the insured. Business activities are not scheduled but instead follow the underlying coverage. This endorsement can work with standard and farm-related business activities.

PU 0701–Exclusion–Premises That Are Not Insured Premises

This exclusion bars coverage for premises an insured owns, rents, or that is owned and rented out to others, but which does not qualify as an insured premises. The form has an exception that grants excess protection over such premises that are covered by the applicable underlying insurance.

PU 0702–Exclusion–Bodily Injury, Personal Injury, or Property Damage Arising Out of Pollutants

This form replaces the umbrella policy’s Exclusion 4. The result is that excess coverage for polluting events is covered to the extent it is protected against in the applicable underlying coverage.

PU 0703–Exclusion–Motorized Vehicles–Driver Excluded In Underlying Insurance

This form modifies the umbrella so that no coverage is granted for motorized vehicle losses that involve any driver that is excluded from coverage in the underlying policies.

PU 0704–Exclusion–With Limited Exception–Injury Or Damage Arising Out of A Canine

This form excludes losses that involve injury or damage caused by a canine (coyotes, dogs, foxes, hyenas, wolves, etc.). However, an exception exists when coverage is found in the applicable underlying coverage.

PU 0705–Exclusion–Injury of Damage Arising Out Of A Canine

This form excludes losses that involve injury or damage caused by a canine (coyotes, dogs, foxes, hyenas, wolves, etc.).

PU 0706–Exclusion–Controlled Substances

This form replaces the umbrella policy’s Exclusion 9. It bars bodily injury, personal injury or property damage that is related to controlled substances (use, sale, making, possessing, etc.) However, it does respond to loss involving such substances that are legitimately used under the directions of a licensed health care professional. Coverage is excluded even if covered by the underlying carrier.

PU 0732–Exclusion–Designated Premises

This form permits the insured to exclude a location from coverage under the umbrella. The excluded premises and location must be described in the form.

PU 0733–Exclusion–Designated Vehicles and/or Watercraft

This form permits the insured to exclude watercraft or a vehicle (including any accessory trailers) from coverage under the umbrella. The excluded vehicle or craft must be described in the form.

PU 0734–Exclusion–Designated Driver–Injury or Damage Arising out of Any Auto

This form permits the insured to exclude any incident of vehicular liability under the umbrella for any person listed on the form. It requires entry of the excluded person’s name and birth date. It’s important to note that the exclusion would bar coverage for driving and non-driving liability for the applicable person. So, even if an excluded person seriously injured a third party while unloading a car or closing a car trunk, liability would not apply.

PU 0735–Exclusion–Punitive Damages

This form specifically bars the umbrella from responding to a demand for damages intended to punish or make an example of an insured, though non-punitive damages would still be addressed.

PU 0736–Exclusion–Designated Driver - Injury or Damage Arising Out of Any Auto, Recreation Motor Vehicle, or Watercraft

This form permits the insured to exclude any incident of automobile, recreational vehicle, and watercraft liability under the umbrella for any person listed on the form. It requires entry of the excluded person’s name and birth date. Use of this form removes any obligation for the umbrella policy to respond to a loss where the person named in the form causes a loss which operating a vehicle, RV, or boat.

PU 0743–Exclusion–Fungi, Wet or Dry Rot, or Bacteria

Bars coverage under the umbrella for any liability related to direct or indirect damage or injury caused by mold, fungus, etc. However, the form makes exception for loss caused by food poisoning, slip, and falls and certain farm related injuries when covered elsewhere in the policy.