Trusts & LLCs: Understanding Coverage Under the RLI Personal Umbrella Policy

RLI’s personal umbrella liability policy (PUP) is designed to explicitly insure individuals and not entities. RLI does not specifically name a trust or an LLC as a Named Insured on the PUP. Further, RLI’s PUP does not have any additional insured or additional interest endorsement forms filed to accompany this product.

However, in accordance with the policy provisions, our coverage for Occurrences not involving motorized vehicles or Watercraft includes your Trust or LLC if the primary underlying policy covers your Trust or LLC for the full required minimum limit. For Occurrences involving Automobiles, Recreational Vehicles or Watercraft, coverage extends only to your Trust if the primary underlying policy covers your Trust for the full required minimum limit.

In order for coverage to apply for your Trust or LLC, the primary policy must not be solely in the name of your Trust or LLC. In other words - and as a condition of coverage - the individual Named Insured on the RLI PUP must be a named insured on all underlying personal insurance policies.‍

Note: The word "your" in this context means the individual Named Insured on the RLI PUP. Coverage is reviewed and evaluated based on the facts and circumstances of a specific claim as applied to the terms and conditions of the applicable policy.

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