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Compete for Top Level Talent with Group Umbrella

All, Employee Benefits, Personal Lines, War For Talent

If you’re looking to build out your leadership team, your standard benefits package just won’t cut it anymore. Employers everywhere are seeking out new and creative ways to attract and retain executive and management level talent and compete in today’s war for talent. Of course, there are a multitude of ways to do this, and it’s best to make the choices and implement the programs that make the most sense for your employee demographics and your organization’s overall culture. One benefit that has consistently received great feedback from executives and talent managers at our clients’ companies is group umbrella coverage.

What is group umbrella coverage?

Group umbrella coverage is a product wherein the participating group would receive protection for their assets and net worth in the event of a personal lawsuit.

Higher profile employees (those who would likely be on your executive or management level teams) are by nature at a higher risk for personal lawsuits. They have increased personal assets, and more complicated financial situations that leave them open to risk.

As an employer, you typically would not be impacted by this risk (unless there is a directors & officers dispute), but by providing a group umbrella option to your top level employees, you are assisting them in attaining protection for their personal assets, and providing an out-of-the-box benefit that sets you apart in the labor market.

What do I need to know about this coverage option?

Providing a group umbrella as a benefit to your executive level and management level employees can be a successful tool for talent attraction and retention. Employees are made aware of a personal risk that they may not have been aware of, and provided coverage for that risk by their employer. Employees feel well taken care of, like their personal concerns are just as important to your organization as their professional concerns.

If your organization is interested in adding group umbrella coverage as a benefit for your employees, here is what you need to know:

  • The group size must be big enough. Carriers will not place group umbrella coverage for groups that are too small in size to balance out the risk. Typically, this is around 25 participants and a minimum premium threshold must be met as well. For this reason, this benefit tends to be more popular for larger organizations.
  • There are different ways to fund this benefit. Companies can offer group umbrella coverage as a fully subsidized employer paid policy, or they can payroll deduct the premium from their employees.
  • There is little to no underwriting involved. This is the major benefit to offering a group umbrella policy vs. having employees purchase individual umbrella policies. Carriers will likely not require underwriting for this coverage.

Key Takeaways

Employers are looking for the next new benefit that will entice top talent to choose their organization and stay on board. Group umbrella coverage can be a great solution for larger organizations who want to offer executive and management level employees protection from personal risk. Reach out to your M3 account executive or directly to Jennifer Vanderlip for more information on offering group umbrella coverage to your team.

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